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 395.2493

(l) SALES BETWEEN PARENT AND SUBSIDIARIES

395.2493 Election Under Federal IRC 338. Under IRC 338, a corporation which makes a "qualified stock purchase" of a target subsidiary corporation may elect to have the target treated as if it (1) sold all of its assets at fair market value in a complete liquidation on the acquisition date and (2) as a new corporation bought all of its assets on the next day at a price determined by the purchasing corporation's basis in the target's stock.

The "deemed" sale of assets provided by IRC 338 does not constitute a "sale" for sales and use tax purposes since only stock certificates were sold. 3/7/86.