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.

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.

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.

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.

Transfer Pricing Rules in Canada: An Overview

Canada, like the U.S., imposes a thorough set of documentation requirements, and imposes penalties for failure to comply.

Valuation Considerations for Acquisition Structures

A key tax consideration is whether the acquirer will be entitled to a stepped up tax basis in the assets and thus entitled to future tax deductions.

Deferral of Cancellation of Debt (COD) Income Could Result in Substantial Tax Saving

Determining the degree of insolvency is a key step since this will dictate the amount of COD income which may be excluded.

Valuation Integral to Sec. 409A Requirements

The valuation of a development-stage company’s common stock is best estimated using the methods in the Practice Aid.