EP32 - Tommy Boy - "A reorg"...what does that mean? Trying to get both the 1042 and S-Corp exemption for ESOPs!
This episode reviews the details of what is known as an A Reorg...for companies that are going Esop and are currently S-corps. This opens up the topic of whether or not you can revoke the S-Corporation and then as a C-Corp take the 1042 capital gains tax deferral then immediately go back to an S-corporation which by IRS code should be a five year waiting period. Some advisors use this as a tactic to sell the client on their services which are probably going to be pretty costly...listen on to see what kind of questions you should ask on your journey to an esop...
