In a taxable transaction, the acquirer takes a fair value tax basis in the net assets acquired; in a nontaxable transaction, the acquirer takes a carryover basis in the net assets but a fair value basis in any acquired stock; in a nontaxable exchange
, the acquirer takes a carryover basis in both the net assets and any acquired stock.
The third type of disposal is a nontaxable exchange
wherein the transaction consideration is stock of the acquiring company or a minority equity interest in the disposed and recapitalized business.
(Boot is money or any other property that doesn't qualify for nonrecognition of gain in an otherwise nontaxable exchange
A taxpayer can postpone depreciation recapture by using a nontaxable exchange
to dispose of an appreciated asset.
The taxpayer argued that it was a nontaxable exchange
because: 1) company A did not distribute any of the funds to her personally, but to company B instead, and 2) she gave up a portion of her company A annuity solely in exchange for the company B annuity.
in a nontaxable exchange
that will result in an NOL carryover under Sec.
This determination addresses the issue of whether an intercorporate transfer pursuant to IRC section 351 (i.e., nontaxable exchange
of property for stock) should automatically be deemed "distortionary" for New York combined filing purposes.
Generally the transfer of property from one spouse to another due to a divorce is a nontaxable exchange
under IRC section 1041.
20 (1998), the Tax Court held that a partial exchange of an existing annuity contract for a new annuity contract is a nontaxable exchange
The use of written contract assignments can alleviate any fear that the taxpayer may have with respect to the intermediary having title; it is critical that the taxpayer understand that the assignments are a required formality to ensure a nontaxable exchange
Instead of selling the stock outright, A organizes corporation C under the laws of Canada, then transfers the 100,000 X shares for C's entire capital stock in a nontaxable exchange
. C sells the X stock for 310,000,000.
368(a) (1) specifies seven types of corporate reorganizations--A through G--that qualify for nontaxable exchange