WebAre 338(h)(10) tax elections really the rage? Why isn't everyone doing it? A few restrictions... 1 Seller must be a US corporate subsidiary or an… WebNov 19, 2024 · A section 338(h)(10) election cannot be made for a target corporation unless it is acquired from a selling consolidated group, a selling affiliate (as defined in …
GT’s Quick Guide to Section 338 (h) (10) Elections
WebSep 15, 2011 · Given that making a valid Section 338(h)(10) election requires that certain conditions be met, it is not always easily achieved. If a buyer is concerned about meeting the requirements to make a Section 338(h)(10) election, consideration should be given to an LLC structure as an alternate means to achieve a step-up. Using an LLC to Achieve Tax ... Webmaking a § 338(h)(10) election for the target corporation, a C corporation, which is either the corporate shareholder’s affiliate or a member of its consolidated gr oup? A-4: The corporate shareholder recognizes no gain or loss on the sale of the target corporation’s stock. See § 1.338(h)(10)-1T(d)(5)(iii) of the temporary Income Tax ... property assessment search burt county ne
The Perils of Electing S Corporation Status - Barnes & Thornburg
WebBoth types of Sec. 338 elections require that a purchaser acquire 80% of the vote and value of the target company’s stock. In the case of a Sec. 338 (g) election, the target recognizes gain on the deemed sale of its assets. The tax impact of this gain is borne by the acquirer. The target is then considered a new corporation with a stepped-up ... Web3. T’s shareholders have basis in T stock=$120. 4. A makes a Sec. 338 election. To make 338 election must have: 1. 2. Taxes and Business Strategy Merle Erickson Page 24Result: (Do T shareholders first) T shareholders (first): • Receive $179 from the Acquirer • Recognize a gain = • Pay tax = • After-tax, shareholders have. WebJun 9, 2024 · The Internal Revenue Code allows buyers and sellers of the stock of an S corporation to make a Section 338 (h) (10) election so that a qualified stock purchase will … property assessment records pa