Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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395.0000 OCCASIONAL SALES—SALE OF A BUSINESS—BUSINESS REORGANIZATION—Regulation 1595

Annotation 395.2020

(i) TRANSFERS AND CONTRIBUTIONS TO NEW CORPORATION OR PARTNERSHIP

395.2020 Transfer in Exchange for Stock. The transfer by taxpayer corporation of certain machinery and equipment to a new corporation in return for its own stock, does not meet the requirements of an occasional sale for two reasons:

(1) The sale did not include all or substantially all of the seller's property held or used in an activity for which a seller's permit is required.

(2) After the transfer, the real or ultimate ownership of the property was not the same as existed prior to the transfer, the transferor owning less than the required 80 percent of the stock in the transferee corporation. 12/10/53.