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Taxable Acquisition

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Taxable acquisition
A merger or consolidation that is not a acquisition. The selling shareholders are treated as having sold their shares.

Taxable Acquisition
A merger where the value of the assets a stockholder receives at the end of the transaction is substantially different from the value of assets before the transaction began. For tax purposes, stockholders are treated as having sold their shares, and are therefore subject to capital gains taxes.


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263(a)-5 reserves on the treatment of capitalized costs incurred by a target corporation in a taxable acquisition of the target's stock where no section 338 election is made.
TAXABLE ACQUISITIONS The Treasury Department issued final regulations to provide CPAs with guidance on how to allocate basis to assets transferred in actual sales and deemed asset sales under IRC section 338.
Example 13--category 6 transaction costs: The facts are the same as in Example 12, except that G acquired H in a taxable acquisition, purchasing all of H's assets for $8 million.
 
 
 
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