Section 355(e) applies to distributions that are part of a plan pursuant to which one or more persons acquire stock representing a 50-percent or greater interest in "the distributing corporation or any controlled corporation.
Is the distribution of C, however, a distribution that is part of a plan pursuant to which one or more persons acquire stock representing a 50-percent or greater interest in the distributing corporation or any controlled corporation?
AXA Canada Signs an Agreement to Acquire Citadel 53
First American Signs an Agreement to Acquire TransContinental 61
Within the 6 months' period, corporation A acquires an additional 60 percent of the stock of corporation W solely for its own voting stock, so that it owns 90 percent of the stock of corporation W.
Based on this factor, it would appear that any exchange solely for voting stock that acquires less than 80 percent of the acquired corporation would be dependent on a prior or subsequent purchase or exchange of stock to gain control.
The acquiring corporation must immediately transfer the issuing corporation's stock to acquire money or other property; and
Applying similar requirements in the partnership context, a partnership would need to acquire (or be deemed to acquire) the corporate stock from its corporate partner in a carryover basis-type transaction and immediately transfer the stock of its corporate partner for services rendered to the partnership by its employees.
Buffalo can acquire
a further 2% interest (51% in the aggregate) by paying, in cash or shares at Buffalo's election, a further CAD$500,000 on or before February 15, 2007
Expenses incurred to acquire
or create a new business qualify for amortization if incurred prior to the final decision to acquire
or create that business.
the holding company led by billionaire investment guru Warren Buffet, acquires
Example 1: Foreign corporation Y acquires
foreign corporation X.
A business combination occurs when an entity acquires
net assets that constitute a business or equity interests of one or more other entities and obtains control over that entity or entities.
Thus, if Acquiring acquires
the Target assets on the 16th day before the end of Acquiring's year, the absorption of Target's loss carryovers is limited to 15/365 of Acquiring's taxable income for the year.
The acquiring corporation must be the one that acquires
the assets or stock in the reorganization.