Which of the following statements best describes a §338 transaction?

Question

Quizplus · Accepted Answer

A §338 transaction is an election made by the buyer to treat a stock acquisition as an asset acquisition. This allows the buyer to obtain a step-up in the tax basis of the assets acquired which can result in significant tax savings. In a §338 transaction, the buyer is treated as if they purchased the assets of the target company instead of the stock. This allows the buyer to obtain a step-up in the tax basis of the assets acquired which can result in significant tax savings.

Which of the Following Statements Best Describes a §338 Transaction