Jump to content

Repurchase of ESOP stock at Plan Termination

Recommended Posts

I don't think Section 162(k) applies to interest deduction. See (b)(1), below.
§ 1.162(k)-1 Disallowance of deduction for reacquisition payments.

(a)In general. Except as provided in paragraph (b) of this section, no deduction otherwise allowable is allowed under Chapter 1 of the Internal Revenue Code for any amount paid or incurred by a corporation in connection with the reacquisition of its stock or the stock of any related person (as defined in section 465(b)(3)(C)). Amounts paid or incurred in connection with the reacquisition of stock include amounts paid by a corporation to reacquire its stock from an ESOP that are used in a manner described in section 404(k)(2)(A). See § 1.404(k)-3.

(b)Exceptions. Paragraph (a) of this section does not apply to any -

(1) Deduction allowable under section 163 (relating to interest);

Link to comment
Share on other sites

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 account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Create New...