WebOct 31, 2016 · 8. S-Corp 8 Steps 1.Buyer purchases at least 80% of S-Target’s shares for cash. 2.Buyer and all S-Target shareholders jointly make a Sec. 338 (h) (10) election, whereby S-Target is treated as selling its assets to New Target in exchange for consideration that includes the discharge of its liabilities. WebSection 338 (h) (10) Election Scenario 1 You’ve found a great company whose acquisition you believe would advance your objectives. Its stock is valued at $1.5 million. But then …
Acquisition Planning for a Tax Basis Step-Up – The Florida Bar
WebUnder section 338(h)(15), a combined deemed sale return (combined return) may be filed for all targets from a single selling consolidated group (as defined in § 1.338(h)(10)-1(b)(3)) that are acquired by the purchasing corporation on the same acquisition date and that otherwise would be required to file separate deemed sale returns. The ... WebAbout Form 8883, Asset Allocation Statement Under Section 338 Use Form 8883 to report information about transactions involving the deemed sale of corporate assets under section 338. This includes information previously reported on Form 8023, Elections Under Section 338 for Corporations Making Qualified Stock Purchases. Current Revision how do talents work in dragonflight
Instructions for Form 8023 (11/2024) Internal Revenue …
WebSome of the differences include, but are not limited to: sales of business assets; IRC Section 338 (h) (10) transactions; like-kind exchanges; wash sales; capital gains distributions; bona fide sales to related parties; and transactions related to fraudulent investment schemes. WebJan 1, 2024 · A §338(h)(10) election is treated as a deemed sale of the assets of the underlying corporation, followed by a deemed liquidation of the corporation. 26 As with an election under §338(g), an election under §338(h)(10) requires that at least 80 percent by vote and value of target be acquired. 27 Additionally, as with respect to a transaction ... WebIRC §338 (h) (10) transactions Some of the most interesting tax situations in recent years have involved the extent to which the gains from I.R.C. section 338 (h) (10) transactions of S corporations are taxable in New York State, both for purposes of the corporation franchise tax and the individual income tax. how much should car payment percent income