Stock purchases section 338
The term “qualified stock purchase” means any transaction or series of transactions in which stock (meeting the requirements of section 1504(a)(2)) of 1 This election applies to acquisitions of freestanding C corporations. The election is made unilaterally by the acquirer after purchasing stock from the target's If a Section 338(h)(10) election is made, the stock purchase is ignored for tax purposes; instead the target corporation generally is treated as making a deemed Portfolio 788 analyzes in detail the elections under §338(g) and §338(h)(10), available when a purchasing corporation makes a "qualified stock purchase" of a
Taxable Acquisitions – Section 338(h)(10) Election. • Allows stock purchase to be treated as asset purchase for tax purposes. Thus,. Target SH receives cash
All stock purchases made by members of the P group are aggregated in determining whether a qualified stock purchase has occurred. Section. 338(h)(5), (8); Reg. If, however, the form of acquisition were a stock purchase, P would expect to retain Ts historic asset basis, i.e., a regular Section 338 election would not make Taxable Stock Purchase. Purchasing Stock with a Sec. 338 Election. ○ When a buyer purchases stock, a Sec. 338 election treats the purchaser as if assets were. A stock purchase is simple. In general, a purchaser buys stock from shareholders of a corporatio n. The selling shareholders treat the transaction as a sale of 15 Jan 2019 In particular, this article focuses on the requirement that stock of the target company be acquired by "purchase" from unrelated persons, and how A section 338 election as to a target corporation also applies to any other qualified stock purchase by the purchasing corporation of a "target affiliate" of the target
15 Nov 2018 If an election is made, the Buyer is treated as organizing a “new” CFC that purchases the assets of the “old” target CFC for the amount paid for the
Taxable Acquisitions – Section 338(h)(10) Election. • Allows stock purchase to be treated as asset purchase for tax purposes. Thus,. Target SH receives cash Section 338 Elections. Acquiring, a corporate purchaser, can elect under section 338 to treat the purchase of the Target stock as a purchase of Target's assets if,
1 Nov 2016 Under the Sec. 338 election, the parties treat the transaction as a stock sale for legal purposes, so the buyer will still acquire the seller's liabilities
In addition to both of those, there's also a Section 338(h)(10) Election, which allows a stock purchase to be treated like an asset purchase for accounting Section 338(h)(10) election in a transaction (i) that is structured as an equity block the taxable purchase of the requisite amount of target corporation stock by a.
1 Mar 2001 Section 338 permits a corporation that has purchased a controlling of the target's stock treated as a purchase of assets rather than stock.
Taxable Acquisitions – Section 338(h)(10) Election. • Allows stock purchase to be treated as asset purchase for tax purposes. Thus,. Target SH receives cash Section 338 Elections. Acquiring, a corporate purchaser, can elect under section 338 to treat the purchase of the Target stock as a purchase of Target's assets if, In addition to both of those, there's also a Section 338(h)(10) Election, which allows a stock purchase to be treated like an asset purchase for accounting
A stock purchase is simple. In general, a purchaser buys stock from shareholders of a corporatio n. The selling shareholders treat the transaction as a sale of 15 Jan 2019 In particular, this article focuses on the requirement that stock of the target company be acquired by "purchase" from unrelated persons, and how A section 338 election as to a target corporation also applies to any other qualified stock purchase by the purchasing corporation of a "target affiliate" of the target The first alternative is selling the stock of an S corporation and making an election under IRC Section. 338(h)(10)2 (“338 Election"). Under a 338 Election, the stock 15 Nov 2018 If an election is made, the Buyer is treated as organizing a “new” CFC that purchases the assets of the “old” target CFC for the amount paid for the