IRC Section 338 allows a deemed sale election generating immediate taxation to the target corporation and a stepped up or stepped down basis to the price paid by the acquiring corporation for the target corporation stock plus liabilities on the deemed sale Examine at least one (1) benefit of a Section IRC 338 liquidation election for a target corporation Create a scenario that would demonstrate a favorable IRC Section 338 liquidation election for a target corporation

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Answer IRC 338 is often favourable for buyers in corporate acquisitions Sec 338 permits a corporation that makes a qualified stock purchase of another ... View the full answer