“C” Reorganization
“C” Reorganization
The target corporation must liquidate as part of the plan of reorganization unless the IRS waives this requirement.’ As a result, the shareholders of the target corporation become shareholders in the acquiring corporation. In determining the tax consequences to the liquidating target, the reorganization provisions govern-not the liquidation rules of §§ 336 and 337.
Explanation:
* Target exchanges substantially all its assets for voting stock of Acquiring.
* Target may receive a limited amount of boot in addition to the voting stock.
* Acquiring owns the assets of both Acquiring and Target.
* Target liquidates after the transfer, distributing Acquiring Company’s stock and any retained assets.
* Target’s former shareholders become shareholders in Acquiring.
We hope you found this article about “”C” Reorganization” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe to our YouTube Channel for more updates.
Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.
They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.
Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.
Gemstone as Investments?
Gemstone as Investments? For the past several days, Marc Anthony has been given the highest level of stately treatment as he sits in the court of Cleopatra, the last queen of Egypt. Despite the grandeur of the banquets, Cleopatra has shown nothing but disdain. She is quick to disregard the roasting of the eight wild…
The Personal Rewards of Philanthropy
The personal rewards of philanthropy can be enjoyed by anyone. The best part of philanthropy is how it appeals to our finer feelings. Watching the joy our gifts of means and time brings to others deposits a feeling of euphoria in the heart that feels unlike anything else. The following story told by theologian Gordon…
Dreams Should Not Have Limits
I believe that dreams should not have limits. Basic Dreams Family, education, career, prosperity and back to the family; when we determine the cornerstones of our lives, we don’t choose randomly; rather we begin with a clear vision of how we want our lives to be. When we are young, we dream of the impossible,…
Strengthen Your Estate Plan by Strengthening Your Marriage
Strengthen your estate plan by strengthening your marriage. Rarely would one go into marriage planning to get a divorce, however right now that’s how almost half of all marriages end. It doesn’t matter if one or both parties are starving students or one or both receive extensive support from their respective wealthy family offices, the…