Q: I am interested in giving my employees some kind of employee ownership. What do you recommend?
A: While I cannot recommend or give out legal advice via newsletter, one item of interest would be an employee stock ownership plan or an ESOP. In an ESOP, the owner of the company can carefully craft ownership limits and details for their employees. Once the employee resigns, employee is compensated for their shares and the shares can then again be resold to another.
Q: Once again we face the peril of capital gains tax rates and the estate tax burdens rising. What is a good game plan to follow?
A: From a tax perspective, if one is thinking about selling their business, 2015 or 2016 is a good time to do it because of the low capital gains rates. My opinion is that the estate tax will not be much of a factor either as the exemptions will be increased from time to time.
Q: I am thinking about making purchases of large equipment, how much may I deduct immediately under Section 179 in the year 2015?
A: The Section 179 deduction, in 2015 is $25,000. No news has been announced of pushed in Congress to raise the limit for this year.
By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors