ama
Aug 28 2001, 05:45 PM
Do shares in an S corporation held through an ESOP count toward the 2% shareholder limit in Section 1372?
RLL
Aug 28 2001, 06:15 PM
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).
ama
Aug 29 2001, 08:52 AM
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.
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