Sec. 338 g election

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August undefined, 2024

Web1 Jan 2024 · In general, a 338 (g) election allows an acquiring corporation to treat what would otherwise be a stock acquisition as an asset acquisition, solely for tax purposes. If … Web1 Dec 2024 · For example, the purchase of 100% of a partnership or disregarded entity (e.g., a limited liability company) will be treated as an asset purchase. The purchase of the stock of an S corporation or a …

Selling CFC Stock: A Buyer’s Section 338 Election Can Be Beneficial

Web21 Apr 2024 · For example, Revenue Procedure 2003-33 provides relief for late Section 338 (g) and Section 338 (h) (10) elections with respect to a qualified stock purchase if the relief is requested within 12 months of the date of discovery of the missed election and other requirements set forth in the revenue procedure are satisfied. WebSec. 338 elections generally take one of two forms: the Sec. 338 (g) election, which is most useful in the case of foreign acquisitions, and the Sec. 338 (h) (10) election, which is commonly used in the case of domestic acquisitions. excel power query manual

Critical valuation issues that arise in common corporate transactions

Web1 Nov 2024 · A section 338 (g) election also can be beneficial for a domestic corporate seller of CFC stock, although not in all cases and the analysis can be complex. As discussed in a prior Insight, gain recognized by a domestic corporation on the sale of CFC stock is recharacterized as a dividend under section 1248 to the extent of the previously untaxed ... Web25 Aug 2024 · Section 338(g) elections: The final regulations clarify that, in connection with an election under section 338(g), a section 245A shareholder of the new target generally does not succeed to an extraordinary disposition account with respect to the old target. However, the final regulations also contain special WebS also has $10 of liabilities. Buyer ( B ) acquires 100% of S ’s outstanding stock for $20, and the parties make a Sec. 338 (h) (10) election. S ’s AGUB is $30: the $20 purchase price, increased by the assumed liabilities of $10. The inventory with FMV of $30 is therefore allocated tax basis of $30 under Regs. Sec. 1.338-6. bsa streamlight bicycle

Valuation Plays Key Role in Section 338 Elections

Section 338 Election - Overview, Asset Sale, Tax …

Web24 Mar 2024 · While a section 338 election (described later) is treated as an asset purchase, it does not necessarily allow for the selective purchase of the target’s assets or avoidance … WebThe Purchaser makes the election under section 338(g). However, the results of the deemed asset sale, where the Target is a CFC, generally impact the U.S. seller. See Reg. 1.338-9(b)(2). If the seller does not want the purchaser to make such an election, this should be specified in the stock purchase agreement. bsas telecoms ltdWebAn election under section 338 may be made for target after the acquisition of assets of the purchasing corporation by another corporation in a transaction described in section 381 … bsa stealth tactical scope

"Web1 day ago · or a section 338(h)(10) election; and (2) the acquisition is a qualified stock purchase. Section 338(h)(10) permits the purchasing corporation and sellers to elect jointly to treat the target corporation as deemed to sell all of its assets and distribute the proceeds in complete liquidation. A section 338(h)(10) election may be made for target ... " - Sec. 338 g election

Sec. 338 g election

An old friend reconsidered: Post-TCJA Sec. 338 (g) …

A Section 338(h)(10) election is much more common than a Section 338(g) election because the 338(g) election results in two levels of tax, whereas a 338(h)(10) election results in only one. In a regular Section 338 election, two levels of tax are imposed: one on the shareholders upon their sale of the target … See more Due to the double imposition of the tax, a regular Section 338 election often is unattractive and typically is made only when the target has significant tax attributes (e.g., net operating losses) to offset the gain … See more Thank you for reading CFI’s guide to Section 338 Election. To help you advance your career, check out the additional CFI resources below: 1. Section 368 2. Section 382 3. IRC Section … See more An S Corporation is a regular corporation that has 100 shareholders or less, which enables the company to enjoy the benefits of incorporation but … See more If the target is an S corporation and a stock purchase is desired for non-tax reasons, but an asset purchase is desired for tax reasons, it is … See more WebThe Internal Revenue Code's Section 338 election offers a means to characterize stock transactions as asset acquisitions for tax purposes. In other words, the selling corporation will face the transaction-related tax …

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WebAbout Form 8023, Elections Under Section 338 for Corporations Making Qualified Stock Purchases Purchasing corporations use this form to make elections under section 338 … Web15 Nov 2024 · In summary, a section 338 (g) election generally is beneficial for a domestic corporate purchaser of CFC stock because the stepped-up basis results in a reduction of …

WebSection 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 … Websection 338 elections for lower-tiered targets, whether one or more Forms 8023 are filed to make the elections. If, for example, P purchases target A, target A owns target B, and P makes a section 338 election for target A, this results in a deemed QSP of target B. To make an election for target B, complete and sign Form 8023 as if the purchasing

Web6 Aug 2024 · extensions of time to: (i) file a “section 338 election” under section 338(g) with respect to Purchaser’s acquisition of the stock of Target on Date 3 (sometimes hereinafter referred to as "the Section 338(g) Election"), and (ii) make a late election on behalf of Target to be a qualified subchapter S subsidiary (“QSub”) under section Web1 Jul 2024 · Editor: Christine M. Turgeon, CPA. Valuations play a critical role in corporate tax planning. Whether a taxpayer transfers property to a corporation under Sec. 351, a corporation acquires in a qualified stock purchase (QSP) all the stock of another corporation and a Sec. 338(g) election is made, or a corporate parent's corporate subsidiary …

Web19 Nov 2024 · A section 338 election will not be valid for a target that is a CFC, a passive foreign investment company, or a foreign personal holding company unless affected U.S. … bsas treatment finderWeb21 Aug 2015 · The Section 338(g) election may also provide other benefits, such as limiting the US acquirer’s Subpart F income in the year of acquisition. The election results in a … bsa stress testWeb20 Aug 2024 · A section 338(g) election may reduce a domestic buyer’s post-acquisition GILTI inclusion amount, because asset basis step-up can be written off in computing the … bsas trainings massachusettsWebThere are two types of section 338 elections. A section 338 (g) election is made only by the purchasing corporation. A section 338 (h) (10) election is made jointly by both the old … excel power query iso week numberWebSection E—Elections Under Section 338 6 Check here to make a section 338(h)(10) election for the target corporation listed in Section B on page 1 . . . . . . . . . . 7 Check here to make a section 338 election (other than 338(h)(10) election) for … bs astronomy in the philippinesWebElections Under Section 338 for Corporations Making Qualified Stock Purchases. See separate instructions. . Information about Form 8023 and its separate instructions is at . … excel power query networkdaysWeb22 Jul 2024 · A Sec. 338 (g) election permits a purchasing corporation to treat a qualified stock purchase as an asset purchase, which allows the buyer to obtain a step-up in basis of the target’s assets in what is otherwise treated as a sale of corporate stock. Which is more common, section 338 or Section 338 ( G )? excel power query pdf einlesen