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 … WebFor purposes of subtitle A of the Internal Revenue Code (except as provided in § 1.338-1 (b) (2) ), the consequences to the parties of making a section 338 (h) (10) election for T are as follows: (1) P. P is automatically deemed to have made a gain recognition election for its … (a) In general - (1) Deemed transaction. Elections are available under section 338 … (ii) Analysis. (A) For Federal income tax purposes, the section 338 election …
Differences in PPA Procedures: Financial Reporting vs Tax Reporting
WebFeb 13, 2024 · ODT has also indicated that it will treat a sale of a disregarded entity or an IRC Sec. 338 (h) (10) election as the sale of a business interest ineligible for the BID or lower tax rate, contrary to the federal income tax treatment. WebMar 1, 2014 · Sec. 1.338-6. The basic result of a Sec. 338 (h) (10) or Sec. 336 (e) election is to allow the purchaser of a corporation to write up the basis of the corporation’s assets to the amount paid for the target’s stock, thereby avoiding the double taxation of a straight stock purchase. shannon vincent facebook
What is a 338(h)(10) election and what are the benefits?
WebGeorgia does recognize the IRC 338 (h) (10) election. In this case, the gain on the sale of the stock would not be recognized. Instead there would be a deemed sale of the assets, … 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 … WebSep 1, 2016 · Upon examination, the IRS concluded that the safe - harbor election of Rev. Proc. 2011 - 29 was unavailable to the S corporation target because a Sec. 338 (h) (10) election was outside the definition of a covered transaction, holding that a deemed asset acquisition under a Sec. 338 (h) (10) election did not constitute a covered transaction for … shannon vincent moss point