Guest ama Posted August 28, 2001 Posted August 28, 2001 Do shares in an S corporation held through an ESOP count toward the 2% shareholder limit in Section 1372?
RLL Posted August 28, 2001 Posted August 28, 2001 Hi ama --- No....the ownership of such shares is NOT attributed to ESOP participants for this purpose, per IRC sections 1372(B) and 318(a)(2)(B)(i).
Guest ama Posted August 29, 2001 Posted August 29, 2001 Thanks RLL. I knew that section 318 (2) excepted stock owned by a 401(a) trust but I wasn't sure if the ESOP interest constituted direct ownership of the shares.
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now