ESOP Repurchase Obligation Issues in S Corporations

Topics:
Accounting software
Tags:
Benefits,
ESOP,
ESOP Economics,
Government,
Human Resources,
Regulations,
S,
Stock Options,
Stock Options & Grants
Source:
ESOP Economics

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Overview: S corporation status does not directly affect the amount of a company's ESOP repurchase obligations, but most ESOPs in S corporations hold large percentages of company stock. This is because the tax advantages associated with S corporation status vary directly with the percentage of the company's stock owned by the ESOP. Since ESOP repurchase obligations also vary directly with the amount of stock owned by the ESOP, S corporations with ESOPs tend to have high repurchase obligations. Planning for the repurchase obligations is therefore more important and more challenging. This article will focus on several ESOP repurchase obligation issues as they relate to S corporations

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Format: HTML | Date: Jan 2003 | Pages: 2


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