February 15, 2012

White House Budget and ESOPs

Executive Director

The Obama administration's revenue proposals include one item specific to ESOPs. The administration notes that current law is unclear about whether transfer of qualified replacement property to a spouse should trigger tax on the amount of capital gains originally deferred in an ESOP transaction. It proposes clarifying that such a transfer would not trigger tax, and the accompanying analysis suggests that the revenue impact will be "negligible."