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8 Acquisition Disposition
8 Acquisition Disposition
8 - Taxable Corporate
Acquisitions/Dispositions
Probable alternatives:
1) Sell stock with no §338 election (one level of tax).
2) Make §338 election if Target corp. has net
operating losses which can offset recognized gains.
3) Special treatment where Target corp. is a
subsidiary of another corporation – & Code
§338(h)(10) election is a possibility with gain
reported on the Seller’s consolidated tax return.
3/28/2019 (c) William P. Streng 28
Problem (a) p.380
Asset Sale and Liquidation
continued
3/28/2019 (c) William P. Streng 55
LBOs & Tax Limitations on
Excessive Debt p.390