Section 355, Revenue Procedure 96-39 and the Viacom transactions
Article Abstract:
Corporations wishing to pair spin-off of a subsidiary corporation with acquisition of the spun-off corporation or acquisitions by the spun-off corporation must meet the control requirements imposed by IRC sections 355 and 368 to avoid double taxation. Control of the corporation being spun-off is required before the distribution, the amount of stock distributed must be a controlling amount, and control must exist immediately after the transfer of assets. The Private Letter Ruling issued to Viacom, Inc., PLR 9618541, and Revenue Procedure 96-39 have stiffened the control requirements.
Publication Name: Journal of Corporate Taxation
Subject: Law
ISSN: 0094-0593
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
Spin-off and stapling transactions
Article Abstract:
The use of combinations of spin-off or split-up transactions to achieve corporate objectives are discussed, along with stapling transactions under which stocks of separate corporations are purchased and sold together. The IRS position on stapling stocks and stapling/spin-off arrangements is outlined.
Publication Name: Corporate Taxation
Subject: Law
ISSN: 1534-715X
Year: 2001
User Contributions:
Comment about this article or add new information about this topic:
The active trade or business test shows its age
Article Abstract:
The author analyzes the policy implications of IRS pronouncements on the five-year active trade or business test for corporate spin-offs under section 355 of the IRS Code. Application of the doctrine to traditionally out-of-bounds market segments like real estate and high technology is discussed.
Publication Name: Corporate Taxation
Subject: Law
ISSN: 1534-715X
Year: 2001
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Diversification and other investment issues of charitable and other trusts. Unrelated business income and the charitable organization
- Abstracts: Domestic violence. Divorce and distribution. Family law; a federal look at child support
- Abstracts: An economic analysis of shared property in partnership and close croporations law. The evolving partnership
- Abstracts: 10 innovative tort claims; the NLJ identifies promising modified or new causes of action. Six new ways to win: emerging causes of action: 2001
- Abstracts: Standing in the Supreme Court and circuits: October term 1997. Ruling without real rules, or how to influence private conduct without really binding