About the Webinar

Section 1042 of the IRC allows an owner of a closely-held C corporation to defer or potentially eliminate capital gains taxation on shares sold to an ESOP if the seller reinvests the sales proceeds into Qualified Replacement Property. The session will lead attendees through an eligible 1042 rollover, the requirements to meet the 1042 deferral, and the types of like kind property that may be used to meet the like-kind exchange requirements. We will also be able to respond to questions about alternative structures.

 Learning Objectives:

1. Understanding Taxation: Learn how a 1042 rollover can defer or eliminate capital gains on a sale to an ESOP. The session will also describe and quantify the taxes deferred, including capital gains taxes, the Medicare surtax on investment income, the 453A sting tax and certain state taxes
2. Qualification: What qualifies a Qualified Replacement Property and the pros and cons of each type with real life examples
3. Optional Tax Realization and Control: Historical perspective of when capital gain recognition may make sense and the importance of sound advice