Section 38 Section 338 Election and ? 338(h)(10) Election

• Library: Business Transitions 2009 Supp

As an alternative to an I.R.C. § 338 election, elective asset disposition treatment under proposed regulations would
allow domestic corporate taxpayers to elect to treat a sale of stock of a domestic subsidiary corporation (a qualified disposition or QSD) as a disposition of assets under I.R.C. § 336. Prop. Treas. Reg. §§ 1.336-1–5, 73 Fed. Reg. 49,965 (Aug. 25, 2008); see also 73 Fed. Reg. 56,535 (Sept. 29, 2008) (correction). Generally, the § 336 regulations track the concepts and structure of the § 338...