Estimated taxes for Sec. 338(h)(10) transactions.
AJCA Section 839 amends Sec. 338(h)(13) to provide that it "shall not apply to a qualified stock purchase for which an election is made under [Section 338(h)(10)]."
This amendment applies to transactions occurring after Oct. 22, 2004.
As described in the Conference Report, if a transaction eligible for the election under Sec. 338(h)(10) occurs, estimated tax would be determined based on the stock sale, unless and until the parties agree to make a Sec. 338(h) (10) election, on which estimated tax consequences would be based on the deemed asset sale.
FROM KIRSTEN SIMPSON, WASHINGTON, DC
|Printer friendly Cite/link Email Feedback|
|Publication:||The Tax Adviser|
|Date:||Jan 1, 2005|
|Previous Article:||Affirmation of consolidated return regulation authority.|
|Next Article:||Modified treatment of transfers to creditors in certain divisive reorgs.|