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Deferring Taxation Using the Section 1042 "Rollover" Part 2

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This replay was recorded on May 3, 2016.

About This Meeting

Recent Federal legislation resulted in increased long-term capital gains tax rates. As a result, more business owners are expressing their interest for tax-deferred sales to ESOPs. As the selling shareholder to an ESOP, you have the option to pay the capital gains tax created by the sale, or if you are eligible, you can elect section 1042 of the Internal Revenue Code. Electing 1042 allows the selling shareholder(s) to defer the capital gains tax in connection with the sale to an ESOP, and if structured properly would result in a permanent avoidance of paying the capital gains tax.

You will learn:


Deferring Taxation Using the Section 1042 "Rollover"
Nick Francia, UBS and Andrew Shapiro, Business Transition Advisors, Inc.


Nicholas J. Francia

presenter photologo

UBS- The Capital ESOP Group

Nick is a financial advisor and member of the Capital ESOP Group in the Washington, D.C. office of UBS Financial Services, Inc. Nick regularly advises on liquidity events designed to enable owners of closely-held businesses to defer and potentially avoid recognition of long-term capital gain in connection with the sale of their businesses. In addition, he provides his clients with a number of sell-side advisory solutions, including business succession strategies, estate planning, and wealth diversification strategies. He speaks nationally on leveraged ESOP transactions and section 1042 tax-deferred sales. He is a member of The ESOP Association and is a member of the National Center for Employee Ownership.

Andrew Shapiro

Business Transition Advisors (BTA)

Andrew I. Shapiro, CLU, ChFC, MSM is senior vice president of BTA, Inc. Andrew has more than 30 years of experience in the financial services industry, with a focus on working with business owners to provide executive benefit plans and craft business succession plans. Andrew is known for his ability to create innovative solutions that integrate family dynamics, tax regulations, and the desires of corporate owners to control and monetize their business assets. A well-known public speaker and author, Andrew holds a B.S. from the prestigious Long Island University College of Management, an M.S. from The American College, and is an active member in many industry organizations. Andrew's history of working with businesses that range from single person startups to century old publicly traded corporations gives him a broad range of experiences on which to draw. Active in the community, Andrew has served on the board of a local charity and coached soccer, wrestling, and tae kwon do.