Tax Consequences of Business Breakups
Author: Jennifer Kowal
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2026 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
This course covers the federal income tax treatment of business breakups, including tax-free reorganizations and dispositions, and split-offs and spin-offs, from both the corporate and shareholder perspectives. It also covers techniques for how to dispose of unwanted business assets prior to a sale or other acquisition transaction and the carryover of corporate tax attributes.
Publication Date: August 2023
Topics Covered
- Taxable Breakups
- Divisive Reorganizations
- Dispositions of Unwanted Assets Prior to Sale of Business
- Tax-free split-off's, spin-off's and split ups
- Capitalization of transaction costs
- Corporate tax attributes including NOLs and tax credits
Learning Objectives
- Recognize types of divisive reorganizations results in a distribution of sub stock
- Identify consideration of shareholder tax treatment with respect to divisive reorganizations
- Identify requirements of various types of tax-free reorganizations
- Describe situations involving tax-free split-offs and spin-offs
- Identify corporate tax attribute carryover rules
- Recognize and explain which transaction costs must be capitalized rather than deducted
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
