Read about a notable M&A case where a buyer’s argument for substance over form led to a $3 million amortization income tax deduction. Learn how the court’s decision highlighted the importance of aligning transaction structure with economic substance. M&A…
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How a Chosen Merger Structure Led to a $2 Million Tax Impact for the Seller
Explore a case study where a business owner’s merger decision resulted in a substantial tax impact of over $2 million. Learn how the chosen deal structure influenced tax outcomes and the implications for buyers and sellers. Seek expert tax advice…
Posted in boot, cash, form over substance, merger, substance over form, tax deferred reorganization Tagged with: business acquisition taxes, business sale taxes, business transaction taxes, buyer-seller transactions, deal structure impact, expert tax advice, IRS tax disputes, M&A tax implications, merger tax consequences, Michael Tseytin v. Commissioner of Internal Revenue, substance over form, tax burdens in mergers, tax implications of mergers and acquisitions, tax planning, tax-efficient deal structures
Use of independent sales representatives subject out of state company to WA gross receipts tax
Today I want to talk about how your company may have more exposure to states in your market that have a gross receipts tax as opposed to an income tax. Let’s say you are a company that makes goods in…
Posted in Taxation
Sale of servers and related computer equipment in divestiture of IT division is an occasional sale under NC sales tax law
Today I want to talk about the sales tax cost of selling or buying the assets of a business. The buyer and seller of a business often argue over who will pay any sales tax on the tangible personal property,…
Posted in Taxation
IL explains its sales and use taxation of a fee for providing a MLM mobile application program to its distributors
Today I want to talk about a multi-level marketing company (“MLM”) that sells its nutritional and diet products through its independent distributors. The MLM charges its distributors a fee to use its mobile application program. The MLM is not based…
Posted in Taxation
Sales income earned from product shipped from Indiana to other states thrown back to Indiana
Today I want to talk about how sales income from product shipped out of state can be taxed by the state from which the product was shipped. People in the trade call this the throwback rule. An example of the…
Posted in Taxation
South Carolina wants Amazon to collect use tax on sales made on its platform by 3rd party sellers to South Carolina residents
Today I want to talk about selling through Amazon’s Fulfillment by Amazon (“FBA”) program. Let’s say your Arizona based company sells books on Amazon through the FBA program. For a FBA fee, your books are stored by Amazon. Amazon’s website…
Posted in Taxation
Profit from sale of joint venture interest apportioned along with company’s other multistate net income
Today I want to talk about a multistate business that grows by joint venturing with another business. Specifically, let’s look at when the company exits from the joint venture with a sizable profit. Most states would tax the profit (or…
Posted in Taxation
Colorado exercises discretion and excludes gain from sale of LLC interest of Colorado headquartered company from Colorado sales factor
Today I want to give a state taxing agency credit for doing the right thing. In this case the honors go to the Colorado Department of Revenue. This story involves a manufacturing company. It had a Colorado headquarters and two…
Posted in Taxation
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