Deferring Taxation Using the Section 1042 "Rollover"NCEO Webinar replays are the recorded version of our live Webinars, using PowerPoint presentations viewed online. To purchase a twelve-month subscription providing unlimited access to all recorded Webinars, including this one, follow this link. If you have a current subscription to the replays, log in here. (Replays are not available for individual purchase). Please contact Andrea Johnson at 510-208-1309 or email@example.com for additional information.
This replay was recorded on May 23, 2017.
About This MeetingRecent 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:
- A high level explanation of how a business owner can sell a portion or all of his or her business to an ESOP and defer recognition of long-term capital gain realized in connection with the sale;
- The significant requirements that a business owner must satisfy before he or she can take advantage of this tax-deferral arrangement;
- Simple rules of thumb to determine whether a particular business owner is a good candidate for a tax-deferred sale to an ESOP
Jamie M. Waldren
Wells Fargo AdvisorsJamie is a managing director-investments with Wells Fargo Advisors, LLC, member SIPC. His experience is in retirement planning, including wealth management, assisting with business succession and ESOP strategies, structuring QRP portfolios, liquidity and asset management, and providing access to trust and insurance services through affiliates and non-affiliates. He holds the FINRA Securities Registrations 7, 63, 8, and 31.