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Business Asset Sale Not a C Reorg Because No Seller Continuity of Interest in Buyer

M&A Tax Stories August 31, 2020 Introduction A company and its owners may avoid federal corporate income taxation on its gain from the sale of the assets of the business if the seller receives buyer voting stock from the buyer

Posted in C Reorganization, tax deferred reorganization Tagged with:

Seller Retention of Receivables in Asset Sale Blows C Reorganization

M&A Tax Stories August 26, 2020 Introduction Taxes can be a major transaction cost when selling a business, especially federal income taxes. One exit plan structure for an owner of a company operating as a corporation is a C Reorganization.

Posted in C Reorganization, substantially all assets, tax deferred reorganization Tagged with: , , ,

Chosen Merger Structure Accelerates over $2 million in Taxes for Seller

July 21, 2020 Introduction Selling a business usually generates significant tax consequences. However, a transaction can sometimes be structured to defer the payment of taxes. The deal The business owner held the KFC and Pizza Hut franchises in Russia through

Posted in boot, cash, form over substance, merger, substance over form, tax deferred reorganization Tagged with: ,

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