Section 7 Nontax Considerations

• Library: Bus Trans 2005

If the parties desire a taxable acquisition, they must choose between a taxable sale of stock and a taxable sale of assets. Frequently, nontax considerations will dictate the final choice between a taxable sale of stock and a taxable sale of assets. The purchaser may be unwilling to purchase stock for fear of contingent and undisclosed liabilities that may exist as a result of past operations of the corporation. Product liability claims and warranty obligations are two types of liabilities that may cause...