IRC 336(e) Elections for S Corporation Targets: Basis Step-Up Treatment for Qualified Stock Dispositions
Timing Requirements, Identifying Eligible Dispositions, Form 8883 Reporting
Recording of a 110-minute CPE webinar with Q&A
This course will provide tax advisers with a thorough and practical guide to the planning opportunities and compliance challenges of utilizing a Section 336(e) step-up election in the acquisition of a target S corporation. The panel will contrast the 336(e) election with 338(h)(10) treatment, outline the requirements for qualification, and detail the reporting issues and risks involved in making the election.
- The basic operation of Section 336(e) election
- Contrast with a 338(h)(10) election
- Qualifying stock distribution (QSD) rules
- Transaction or series of disposition transactions
- Tax-free transactions ineligible for QSD treatment under Treas. Reg. 1.336-1(b)(5)
- Other exceptions
- Step-up in tax basis of target company assets in an 80% or higher stock acquisition
- Deemed transactions triggered by 336(e) election
- Timing issues in making elections
- Mechanics of making a 336(e) election
- Reporting challenges
- Ensuring election is documented timely to avoid the need for PLR
- Valuation requirements
- Adapting form 8883 to report QSDs
The panel will review these and other high priority issues:
- Under what circumstances may a stock distribution qualify for Section 336(e) treatment as a QSD?
- What are the critical timing challenges tax advisers and compliance professionals face in preserving the right to make a 336(e) election without a Private Letter Ruling?
- Valuation and reporting challenges on Form 8883
- What transactions are deemed to occur upon a 336(e) election?
- Potential tax consequences for remaining S corporation stockholders when less than 100% of the stock is disposed
Griffin H. Bridgers
Hutchins & Associates
Mr. Bridgers' practice encompasses all areas of private wealth and family business. In addition to estate... | Read More
Mr. Bridgers' practice encompasses all areas of private wealth and family business. In addition to estate planning and estate administration, he is experienced in mergers and acquisitions, taxation, business transactions, franchising, commercial contracts, asset protection, executive compensation, employee benefits, qualified and non-qualified retirement plans, and nonprofit organizations. He counsels closely-held and family businesses, and nonprofit organizations, with their planning, succession, and liquidity needs in a variety of industries including tech, restaurant and retail, healthcare, manufacturing, construction, real estate, financial services, consulting, and professional staffing.Close
Stephen L. (Steve) Phillips
Senior Partner / CFO
Mr. Phillips heads the firm's tax practice and has spent his career as a tax, business, and corporate partner in... | Read More
Mr. Phillips heads the firm's tax practice and has spent his career as a tax, business, and corporate partner in large and small boutique law firms and as in-house tax counsel to a Fortune 50 publicly held company. He counsels and advises businesses and individuals with respect to a variety of income, wealth transfer, state, and local taxes. Since 1995, he has been Board Certified in Tax (Tex. Board of Legal Specialization). Of note, he has structured and guided the execution of a multitude of acquisition or divestment transactions, both in the U.S. and abroad.Close