Taxable transaction


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Taxable transaction

Any transaction that is not tax-free to the parties involved, such as a taxable acquisition.

Taxable Transaction

A transaction that results in one receiving income that may be taxed. Common taxable transactions are the reception of a paycheck or the sale of stock for a profit. Often, investors wait to sell securities until a certain time (such as a new calendar year) in order to minimize the taxable transactions that occur in a given period of time.
References in periodicals archive ?
For example, if a taxable transaction is assumed, there would be no deferred taxes included as the net assets would have tax basis consistent with book basis.
2 percent represents an increase in actual taxable transactions, while smaller increases represent a decrease in taxable transactions.
However, because WFOE's immediate parent company has changed, this reorganization would be considered a taxable transaction for Chinese capital gain tax purposes.
This section provides that, if Distributing acquires stock of Controlled by reason of any transaction that occurs within five years of the distribution of Controlled stock and that is a taxable transaction, such acquired stock will not be treated as stock of Controlled, but instead it will be treated as other property (i.
355 split-up despite the fact that C was acquired in a taxable transaction within the prior five years.
For example, if a distributing corporation acquired all of a controlled corporation's stock in a taxable transaction that qualified as an expansion of the distributing corporation's existing trade or business under the SAG regime, and later distributed all such stock within five years of the acquisition in an unrelated transaction, the distribution would satisfy the active trade or business requirement but could be fully taxable under the hot stock rule.
Normally, the forgiveness of debt by a creditor would be a taxable transaction.
For example, assume that a foreign parent sells the stock of a domestic corporation to a third party in a taxable transaction and that the domestic corporation has never held any U.
For purposes of comparison, to have achieved an equivalent amount in a taxable transaction, Kraft would have needed to receive approximately $4.
In the past two years, the IRS issued two notices, Notices 2006-85 and 2007-48, dealing with two different versions of the transaction and generally treating repatriation of a foreign subsidiary's earnings as a taxable transaction.