Vance owns all of the stock of Rose, Inc., a C corporation. The fair market value of
Question:
Vance owns all of the stock of Rose, Inc., a C corporation. The fair market value of the stock (and Rose's assets) is about six times Vance's adjusted basis for the stock. He is negotiating with an investor group for the sale of the corporation. Identify the relevant tax issues for Vance.
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From Vances perspective the sale of Rose Inc should be structured to avoid double taxation A sale of the stock of Rose to the investor group achieves this objective The sale of the assets by the corporation or the distribution of the assets to Vance to make the sale followed by the liquidation of the corporation results in double taxation Thus Vance needs to recognize this difference in tax consequences in order to effectively conclude the negotiations Note that the desires of the buyers and Vance as to structure ...View the full answer
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Related Book For 
South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts
ISBN: 1389
41st Edition
Authors: William H. Hoffman, William A. Raabe, James C. Young, Annette Nellen, David M. Maloney
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