Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
395.0000 OCCASIONAL SALES—SALE OF A BUSINESS—BUSINESS REORGANIZATION—Regulation 1595
(l) SALES BETWEEN PARENT AND SUBSIDIARIES
395.2546 Transfer to a Subsidiary. A corporation transferred less than 80 percent of its assets to a newly formed subsidiary. It received stock in the subsidiary. In addition there was an entry of a note receivable on the books of the parent and an entry of a note payable on the books of the subsidiary. The book entries evidence consideration for the assets. The transfer was therefore a taxable sale, not a contribution to capital. 7/11/94.