Get the free Section 338(g) Election - Domestic Target

Copyright 2006 Andrew Mitchel LLC International Tax Services www.andrewmitchel.comSection 338(g) Election Domestic TargetAcquisition (July 1st)Initial StructureCash1 PurchaserDeemed Asset Sale (At

How to fill out section 338g election

How to Fill Out Section 338g Election:

1. Obtain the necessary form: Start by obtaining and familiarizing yourself with Form 8023, also known as the "Election Under Section 338(g) or Section 338(h)(10)" form. This form is used to make the election under Section 338g.
2. Understand the requirements: It is essential to understand the requirements and implications of making a Section 338g election. This election allows a buyer of stock in a corporate acquisition to treat the transaction as an asset acquisition for tax purposes. Make sure you have a clear understanding of the specific transaction and the tax consequences involved before proceeding.
3. Gather relevant information: Collect all the necessary information required to complete the form accurately. This typically includes details about the buyer, seller, acquisition date, and other transaction-specific information. Ensure you have access to all the relevant financial records and supporting documentation.
4. Complete the form: Carefully fill out all the sections of Form 8023, providing the accurate information as required. Double-check your entries for accuracy and completeness. Take your time to avoid any errors or omissions that could lead to complications later.
5. Attach any additional documentation: Depending on the circumstances, you may need to attach additional documentation to support the election. This can include valuations, appraisals, or other specific items required by the IRS. Ensure you have all the necessary supporting documents and attach them to the form as instructed.
6. Review and sign: Once you have completed the form and attached any required documents, carefully review all the information provided. Ensure there are no mistakes and that the form reflects your intentions accurately. Once satisfied, sign the form in the appropriate section.
7. Filing the form: Send the completed Form 8023 to the appropriate IRS address as indicated on the form instructions. It is advisable to retain a copy for your records and consider sending it via certified mail to have proof of submission.

Who Needs Section 338g Election?

1. Corporate Acquirers: Section 338g election is primarily used by corporate acquirers who want to treat a stock acquisition as an asset acquisition for tax purposes. This can provide tax benefits and allow the acquirer to take advantage of stepped-up basis rules.
2. Asset Purchase Transactions: In cases where a buyer purchases at least 80% of the stock of a target corporation, the buyer may choose to make a Section 338g election. This is often done to allocate the purchase price to specific assets and enhance the tax benefits associated with the acquisition.
3. Tax Planning Strategies: Businesses and individuals engaged in complex tax planning strategies involving corporate acquisitions may opt for a Section 338g election to optimize their tax outcomes. It is important to consult with tax professionals to determine the applicability and potential benefits of making this election in specific circumstances.

For pdfFiller’s FAQs

How do I complete section 338g election online?

Easy online section 338g election completion using pdfFiller. Also, it allows you to legally eSign your form and change original PDF material. Create a free account and manage documents online.

How can I fill out section 338g election on an iOS device?

Install the pdfFiller app on your iOS device to fill out papers. Create an account or log in if you already have one. After registering, upload your section 338g election. You may now use pdfFiller's advanced features like adding fillable fields and eSigning documents from any device, anywhere.

How do I complete section 338g election on an Android device?

Use the pdfFiller app for Android to finish your section 338g election. The application lets you do all the things you need to do with documents, like add, edit, and remove text, sign, annotate, and more. There is nothing else you need except your smartphone and an internet connection to do this.

What is section 338g election?

Section 338g election allows a purchasing corporation to treat the acquisition of a target corporation as an asset purchase for tax purposes.

Who is required to file section 338g election?

The purchasing corporation in an acquisition is required to file section 338g election.

How to fill out section 338g election?

Section 338g election is typically filed with the IRS using Form 8023, which requires specific details about the acquisition.

What is the purpose of section 338g election?

The purpose of section 338g election is to provide tax benefits for the purchasing corporation by allowing them to step-up the basis of the acquired assets.

What information must be reported on section 338g election?

Section 338g election requires details about the acquisition, including the parties involved, purchase price, and assets being acquired.