S.1618 – 115th Congress (2017-2018): Would Amend Code to Exclude Employee Owned Stock From Excess Business Holdings for Private Foundation Rules

Debbie Stabenow (D.Mi), has introduced S. 1618, which would exclude employee owned stock from private foundation excess business holding rules. The summary of the proposed legislation is as follows:

Introduced in Senate (07/24/2017)

This bill amends the Internal Revenue Code to exclude certain purchases of employee-owned stock from being considered as outstanding voting stock for the purpose of the tax on excess business holdings of a private foundation in a business enterprise.

The bill applies to any voting stock that is: (1) not readily tradable on an established securities market; (2) purchased by the business enterprise on or after January 1, 2005, from an employee stock ownership plan in which employees of the business enterprise participate, in connection with a distribution from the plan; and (3) held by the business enterprise as treasury stock, cancelled, or retired.

See summary, text and actions at following link: S.1618 – 115th Congress (2017-2018): A bill to amend the Internal Revenue Code of 1986 for purposes of the tax on private foundation excess business holdings to treat as outstanding any employee-owned stock purchased by a business enterprise pursuant to ce

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.