WebAn Internal Revenue Code (IRC) Section 338 election is often advantageous for buyers in corporate acquisitions. Sec. 338 permits a corporation that makes a “qualified stock purchase” of another corporation to elect to treat such acquisition as an asset rather than a share acquisition for federal tax purposes. 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-
Purchase Price Allocations Support Section 338 Elections
WebThere 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 target shareholders and the purchasing corporation. Form 8883 must be used to make both types of section 338 elections. Who Must File WebMay 1, 2024 · In a Sec. 338 (h) (10) election, the purchaser must be a corporation, and the term "qualified stock purchase" (QSP) is used when all criteria for the election are met. For a stock disposition to be considered a QSD for an S corporation, on the other hand, the types of purchasers are not restricted. north east nhs ics
26 CFR § 1.338-10 - LII / Legal Information Institute
WebAn 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 … WebI.R.C. § 338 (e) (1) In General — A purchasing corporation shall be treated as having made an election under this section with respect to any target corporation if, at any time during the … WebInternal Revenue Code Section 338 applies to stock purchases of control sufficient to meet an 80 percent ownership test required for consolidated reporting purposes. This control need not be acquired in one transaction alone, it may be … how to return to previous directory in linux