For an acquisition following a distribution, both the distribution and acquisition would be part of a plan if the distributing
and the controlled corporations (or any of their controlling shareholders) intended the acquisition (or a similar acquisition) to occur in connection with the distribution on the distribution date.
5) Where a plan exists whereby taxpayers other than the historic shareholders of the distributing
corporation will gain control of the controlled or distributed corporation, however, the legislative history of the 1997 Act expresses concern that "the transaction more closely resembles a corporate level disposition" than a rearrangement of continuing interests among existing shareholders(6).
In late September AU mailed all of its members a one-page open letter to religious leaders signed by Lynn warning about the dangers of distributing
Coalition voter guides.
Stan Butkowski, President and General Manager of DBI Distributing
INC, said, "The energy drink category is exploding and DBI Distributing
is always interested in the breakthrough capacity of products that capture the marketplace.
or Controlled stock acquired by purchase within the five-year period (including stock indirectly acquired by purchase) will no longer be considered as purchased if (and when) the basis resulting from that purchase is eliminated.
8, 1996), the liquidated business constituted a mere two percent of the total value of the distributing
It is likely that most other distributing
corporations would reach the same conclusion.
The acquisition of stock in the controlled corporation by the distributing
355(d) to require Distributing
to recognize gain on a "disqualified" distribution (one in which any person owns 50% or more of Distributing
or Controlled) if the interest was acquired in a taxable transaction within five years of the distribution.
96-30 include (1) the detailed information, representations, and documentation required for establishing a valid corporate business purpose; (2) a description of the facts and circumstances that may qualify the business purpose; (3) a description of each purpose for the spinoff, not just the corporate business purpose; (4) the required information and representations from foreign shareholders and foreign corporations; and (5) the required information and representations where Distributing
joins in filing a consolidated return.
If both the distributed and distributing
corporation are U.
extends 3Com's reach into the VoIP market through its extensive and deep relationships with value-added resellers.
If there' was a reorganization involving either Distributing
or Controlled within two years of a Sec.
This technology is a ground-breaking step to increase the productivity of engineers through distributed computing," said Silvina Grad-Freilich, distributing
computing product manager, The MathWorks.
all AE&P (or at least the C portion) before the end of the year in which the PII ceiling would be exceeded, the corporation can avoid both the PII tax and possible termination of the S election.