Learn About the Appropriate Section 338 and 336 Elections for Different Client Scenarios
Can a buyer acquire a target corporation's stock for legal purposes but acquire its assets for tax purposes, resulting in a stepped-up basis in the target corporation's assets? Fortunately, the answer is yes, when one of the two section 338 elections is made! Similarly, the section 336(e) election can be advantageous for stock transfers to non-corporate purchasers. But how and when can you use the elections when the stock is being purchased or disposed of?
Join this session with expert speaker Vicki L. Mulak, EA, CFP® who will discuss sections 338(g), section 338(h)(10) and section 336(e) and the elections allowed by these three sections of the Internal Revenue Code. She will address all three elections, how these elections are made, and which elections are appropriate for which client scenario, through the use of practical hypothetical scenarios. By attending this session, you will learn to recognize how “old target” and “new target” are treated for tax purposes with each of the three elections. You will also learn to calculate the basis of assets that result from the election for the purchaser and calculate the gain to the seller.
Understand how each section 338 election functions in a sale of stock
Learn to calculate the aggregate deemed sale price (ADSP) and the adjusted grossed-up basis (AGUB)
Learn to calculate the aggregate deemed asset disposition price (ADADP) for 336(e) elections
Learn to properly complete IRS election Form 8023 and asset allocation Form 8883
Develop competency in recognition of transactions suitable to each election
Vicki L. Mulak is an Enrolled Agent and Certified Financial Planner (CFP) and owner of American Financial and Tax, a tax preparation, planning and representation firm, which was founded in Tustin, California in 1985, when Vicki became both a resident and a business owner.