Get the free Section 338(g) Election - Controlled Foreign Corporation Target

Copyright 2006 Andrew Mitchel LLC International Tax Services www.andrewmitchel.comSection 338(g) Election Controlled Foreign Corporation TargetCash1 Purchaser (U, S,)Deemed Asset Sale (At the Close

How to fill out section 338g election

How to fill out section 338g election:

1. Obtain the necessary forms: Start by obtaining Form 8023, which is the Election to Treat a Qualified Stock Purchase as an Asset Acquisition, from the Internal Revenue Service (IRS) website or by contacting the IRS directly.
2. Determine eligibility: Before filling out the form, determine if you meet the eligibility criteria for a section 338g election. This election is typically made by the acquiring corporation in a qualified stock purchase, where the acquiring corporation wants to treat the purchase as an asset acquisition for federal income tax purposes.
3. Gather required information: Collect all the necessary information, including the names and identification numbers of the acquiring and target corporations, the date of the stock purchase, and any other relevant details about the transaction.
4. Complete Form 8023: Fill out the form carefully, providing accurate and complete information. Ensure that all required fields are filled in correctly and that any supporting documentation is attached as necessary.
5. Consult professional advice: It is highly recommended to consult with a qualified tax professional or attorney who is familiar with section 338g elections to ensure compliance and accuracy in completing the form.
6. Submit the form: Once the form is completed and reviewed, it should be submitted to the IRS by the specified deadline. Be sure to retain a copy of the form and any supporting documentation for your records.

Who needs section 338g election:

1. Acquiring corporations in a qualified stock purchase: The acquiring corporation in a qualified stock purchase may choose to make a section 338g election if they wish to treat the purchase as an asset acquisition for federal income tax purposes.
2. Corporations looking to optimize tax consequences: Section 338g elections can provide potential tax benefits by allowing the acquiring corporation to adjust the tax basis of the acquired assets. This can lead to increased deductions or reduced taxable income for the corporation.
3. Corporations involved in complex transactions: Section 338g elections are commonly used in complex transactions such as mergers and acquisitions, where the acquiring corporation wants to allocate the purchase price to specific assets for tax purposes.
4. Corporations seeking greater flexibility in tax planning: By electing to treat a stock purchase as an asset acquisition, corporations can have greater flexibility in structuring the transaction and managing their tax liabilities.

Note: It is important to consult with a qualified tax professional or attorney to determine if a section 338g election is appropriate for your specific circumstances and to ensure compliance with IRS regulations.

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What is section 338g election?

Section 338g election allows the purchasing corporation in a stock acquisition to treat the transaction as an asset acquisition for tax purposes.

Who is required to file section 338g election?

The purchasing corporation in a stock acquisition is required to file the section 338g election.

How to fill out section 338g election?

Section 338g election can be filled out by submitting Form 8023 to the IRS.

What is the purpose of section 338g election?

The purpose of section 338g election is to allow the purchasing corporation to step-up the tax basis of the acquired assets to fair market value.

What information must be reported on section 338g election?

The section 338g election must include details of the stock acquisition, the fair market value of the assets, and other relevant information.