Valuation Plays Key Role in Section 338 Elections

Sec. 338 elections take two forms: the Sec. 338 (g) election, used for foreign acquisitions, and the Sec. 338(h)(10) election, used in domestic cases.

Valuation Integral to Restructurings/Bankruptcies

Obtaining an objective valuation is a key component of the restructuring process.

IASB Issues Business Combinations Statement

Perhaps the most significant difference in approach relates to the way in which contingent liabilities assumed in a business combination are reported.

Legislation Increases Benefits of Cost Segregation Studies

By employing a cost segregation study, a significant portion of a property may be reclassified to a shorter life category.

Valuation Provides Support for International Transactions

When a company embarks on an international restructuring, it is extremely important to consider the impact of Section 367.

Valuations Provide Critical Support for Asset Acquisitions

When valuation is important for tax purposes, breakdown by legal entity is key since each has its own tax identity and related tax consequences.

Foreign Direct Investment: Tax and Valuation Considerations

In the case of a U.S. acquisition of a foreign target, it was oftentimes beneficial to make a Section 338(g) election.

Cost Sharing Agreements an Effective Tax Planning Tool

The impact of the investor model is that it essentially guarantees a return to the intangibles developer for its efforts.

Purchase Price Allocations Support Section 338 Elections

In general, the impact of a Sec. 338 election is that a stock acquisition is treated as an asset acquisition.

Worthless Stock Deduction May Result in Tax Benefits

Obtaining a valuation from an independent valuation provider is essential to proving that the security has no liquidating value.