Benefits of an employee stock ownership plan in succession planning

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dc.contributor.authorBurke, Megan M.
dc.date.accessioned2023-02-28T16:18:09Z
dc.date.available2023-02-28T16:18:09Z
dc.date.issued2015
dc.descriptionArticle originally published by Journal of Accountancy. Published online 2015. https://www.journalofaccountancy.com/issues/2015/oct/esop-benefits-in-succession-planning.html.
dc.descriptionPermission to deposit the published version was given through direct contact with the publisher. For more information please see the faculty member's entry in Project INDEX -- EDH 7/18/23
dc.description.abstractEmployee stock ownership plans (ESOPs) provide numerous benefits for small business owners and their employees, many of which are realized while the owner is still actively engaged in the business. In addition, proper planning for the owner's exit from the business can result in sizable tax savings. Many owners take advantage of the opportunities under Sec. 1042, which permits nonrecognition (or, more accurately, deferral) of gain on the sale of stock to an ESOP (or a worker-owned cooperative) if the seller purchases qualifying replacement property. This benefit can be magnified by using either a charitable remainder trust (CRT) or a family limited partnership (FLP) along with additional trusts. Although the IRS has recently increased its scrutiny of FLPs, owning an active business through an FLP should bolster the position that the structure has the characteristics of what the IRS considers a "good" FLP.en_US
dc.identifier.citationThis is the published version of an article that is available at https://www.journalofaccountancy.com/issues/2015/oct/esop-benefits-in-succession-planning.html. Recommended citation: Burke, M. M. (2015, October 1). Benefits of an employee stock ownership plan in succession planning. Journal of Accountancy. This item has been deposited in accordance with publisher copyright and licensing terms and with the author’s permission.en_US
dc.identifier.urihttps://hdl.handle.net/11274/14546
dc.identifier.urihttps://www.journalofaccountancy.com/issues/2015/oct/esop-benefits-in-succession-planning.html
dc.language.isoen_USen_US
dc.publisherAssociation of International Certified Professional Accountantsen_US
dc.subjectEmployee stock ownership plansen_US
dc.subjectCharitable remainder trusten_US
dc.subjectFamily limited partnershipen_US
dc.titleBenefits of an employee stock ownership plan in succession planningen_US
dc.typeArticleen_US

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