Irc Section 336

Before november 20 1985 a ruling request was submitted to the secretary of the treasury or his delegate with respect to a transaction of a kind described in section 336 or 337 of the internal revenue code of 1954 as in effect before the amendments made by this subtitle.

Irc section 336. Enter section 336 e in 1986 section 336 e was enacted to prevent certain situations in which a triple tax might arise. 338 h 10 election with the most critical difference being the stock purchaser. Gain or loss recognized on property distributed in complete liquidation.

Federal income tax purposes a qualified stock disposition. The benefit of an asset sale is obvious the basis of the target corporation s assets is stepped up to fair market value. Internal revenue code 336.

Section 336 e authorizes the promulgation of regulations under which in certain circumstances a sale exchange or distribution of the stock of a corporation may be treated as an asset sale. Generally a joint section 336 e election allows i domestic corporate owners or ii s corporation shareholders who dispose of 80 percent or more by vote and value within a 12 month acquisition period of the stock of certain of their corporations to treat such disposition as an asset sale rather than as a stock sale for u s. C before november 20 1985 a ruling request was submitted to the secretary of the treasury or his delegate with respect to a transaction of a kind described in section 336 or 337 of the internal revenue code of 1954 as in effect before the amendments made by this subtitle for purposes of the preceding sentence any action taken by the board of directors or shareholders of a corporation with respect to any subsidiary of such corporation shall be treated as taken by the board of.

338 h 10 election the purchaser must be a corporation and the term qualified stock purchase qsp is used when all criteria for the election are met. This section and 1 336 2 through 1 336 5 provide the rules for and consequences of making such election. A section 336 e election allows certain taxpayers to treat the sale exchange or distribution of corporate stock as an asset sale.