Taxable vs Tax-free Acquisitions Use of cash and debt for acquisition produce tax liability Use of stock and limited cash or debt probably produce tax-free acquisition Primary tax impact is on the seller See Topic Reviews C7-2& C7-3 11
11 Taxable vs. Tax-free Acquisitions Use of cash and debt for acquisition produce tax liability Use of stock and limited cash or debt probably produce tax-free acquisition Primary tax impact is on the seller See Topic Reviews C7-2 & C7-3
Tax Consequences of Reorganizations Target or transferor corporation Acquiring or transferee corporation Shareholders security holders 12
12 Tax Consequences of Reorganizations Target or transferor corporation Acquiring or transferee corporation Shareholders & security holders
Target or Transferor Corporation No gain/loss on asset transfer Assets retain depreciation recapture potential Assumption of generally does not trigger gain recognition No gain/loss on distribution of stock and securities as part of reorg plan 13
13 Target or Transferor Corporation No gain/loss on asset transfer Assets retain depreciation recapture potential Assumption of generally does not trigger gain recognition No gain/loss on distribution of stock and securities as part of reorg plan