WebJul 27, 2009 · In such circumstances, parties to a transaction can utilize one of the few, genuine diathroses of the tax code — an election under Section 338(h)(10), which permits taxpayers to achieve the tax benefits of an asset sale while structuring the transaction as a … WebAug 1, 2024 · Buyers, on the other hand, have been reluctant to purchase stock, as they do not receive a basis step-up on the corporate assets. The growing popularity of Sec. 338(h)(10) elections to treat stock sales as asset sales for tax purposes has increased buyers' willingness to enter into stock purchases.
Nonresident Stock Sale & 338(h)(10): Gain From an Intangible?
WebSection 338 Election Benefits. Section 338 Election of the Internal Revenue Code provides a way to treat stock purchases as asset acquisitions for tax purposes only. In other words, under Internal Revenue Code §338 (h) (10), the selling corporation will bear the tax associated with the transaction, but there will only be one level. Webinformation are necessary to make an election to treat a sale of stock as a sale of assets, to calculate and collect the appropriate amount of tax in a deemed or ... elect to treat … mysecuritas log in
Impact of S corp. shareholder agreements in M&A transactions
WebL. 98–369, § 712(k)(7), provided in introductory text that the regulations be appropriate to carry out the purposes of this section; designated existing provisions as par. (1) and substituted therein “treatment of stock and asset sales and purchases” for “treatment of stock and asset purchases with respect to a target corporation and ... Webnecessary to make an election to treat a sale of stock as a sale of assets, to calculate and collect the appropriate amount of tax in a deemed or actual asset acquisition, and to determine the bases of assets acquired in a deemed or actual asset acquisition. These collections of information are required to obtain a benefit. The Webelection to treat as an asset sale). Stock Purchase (making Section 338(h)(10) or Section 336(e) election to treat as an asset sale). Asset Purchase (S corp does not liquidate). Pre-Closing F Reorganization (deemed asset sale treatment). Pre-Closing F Reorganization (sale of partnership interest / Section 754 election). • 5 mysecurities gm