The IRS generally views forward triangular cash mergers as a purchase of target stock followed by a liquidation of the target for which target shareholders will recognize a taxable gain or loss as if they had sold their shares.
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Q34: Taxable transactions usually involve the purchase of
Q35: A transaction generally will be considered non-taxable
Q36: If a transaction involves a cash purchase
Q37: Purchase accounting affects only the cash flow
Q38: In a cash purchase of assets. the
Q40: In a triangular cash merger, the target
Q41: To demonstrate continuity of interests (COI), target
Q42: If the transaction is tax-free, the acquiring
Q43: Nontaxable transactions also are called tax-free reorganizations.
Q44: A buyer may divest a significant portion
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