WebUse 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 Form 8883 PDF Instructions for Form 8883 PDF ( Print Version PDF) 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 upon discussion with the target company, and you discover that the company’s tax basis in its assets is only $500,000. You’re faced with a new dilemma.

Section 338 Elections - Macabacus

WebInternal Revenue Code Section 338(g) Certain stock purchases treated as asset acquisitions (a) General rule. For purposes of this subtitle, if a purchasing corporation makes an election under this section (or is treated under subsection (e) as having made such an election), then, in the case of any qualified stock purchase, the target corporation- The United States Congress enacted Section 338 in 1982 to allow taxpayers to treat certain qualified stock purchases as asset acquisitions for federal income tax purposes. Section 338 provides two elections: the so-called “regular Section 338 election” under Section 338 (g), and the other under Section 338 … See more 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 … 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 be taxed as if it were a partnership. S Corporations typically do not pay taxes and … 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 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 necessary for the target S corporation’s … See more emory university covid testing in arizona

Sec. 336. Gain Or Loss Recognized On Property Distributed In …

WebIf a buyer purchases the stock of the target and a section 338 (h) (10) election were not made, the selling consolidated group would have $60 of tax gain and, after closing, the target would continue to have $50 of inherent gain in … WebJul 26, 2016 · Section 338 (h) (10) of the Internal Revenue Code can provide significant tax benefits to a buyer of 80% or more of a target corporation. A 338 (h) (10) election allows a buyer of stock of... WebSection 338 (g) Election In the case of a Sec. 338 (g) election, the target recognizes gain on the deemed sale of its assets. This tax impact of this gain is borne by the acquirer. The target is then considered a new corporation with a stepped-up basis in the assets. dr alpher