Tax attributes of the target corporation are lost when a Sec. 338 deemed liquidation election is made.

Name: Tax attributes of the target corporation are lost when a Sec. 338 deemed liquidation election is made.
Brand: Quizplus
Rating: 5.0 (48 reviews)

Question

Quizplus · Accepted Answer

When a Sec. 338 deemed liquidation election is made, the target corporation is treated as having sold all of its assets to a new corporation for their fair market value. As a result, the tax attributes of the target corporation, such as net operating losses and tax credits, are lost.

Tax Attributes of the Target Corporation Are Lost When a Sec