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… WebMar 30, 2024 · There are a few ways to achieve this result. Section 338 (h) (10) election This election recasts a stock purchase as an asset purchase. This option is available when a corporate buyer purchases at least 80% of the stock of an S corporation or a C corporation subsidiary in a consolidated group.
Tax Planning for S Corporations: Mergers and Acquisitions …
Web(c) Section 338 (h) (10) election - (1) In general. A section 338 (h) (10) election may be made for T if P acquires stock meeting the requirements of section 1504 (a) (2) from a selling consolidated group, a selling affiliate, or the S corporation shareholders in a qualified stock purchase. 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. bitlocker troubleshooting logs
The Perils of Electing S Corporation Status - Barnes & Thornburg
WebJul 19, 2016 · A 338(h)(10) election allows a buyer of stock of an S corporation or a corporation within a consolidated group to treat the transaction as an acquisition of 100% … WebMar 30, 2016 · Several S corporation disposition alternatives are available that should be considered when planning for the sale of the S corporation. Owners should compare these various options so that the potential tax impacts and other implications can be analyzed. One such alternative is a “deemed asset sale” by way of a section 338 (h) (10) election. WebAs a result, individuals and partnerships cannot make a 338 election, as they can’t make a QSP, unless they circumvent this restriction by forming a new corporation (“NewCo”) to acquire the Company’s stock. Note: ClearRidge does not provide tax or legal advice. Sort Articles By Journalrecord.com Uncategorized Article Topics 2015 2024 2024 2024 2024 datacite netherlands