“E” Reorganization

Classification of Accepted Patterns of Reorganization

“E” Reorganization

The “E” reorganization is defined as a re-capitalization – the exchanges of stock and securities for new stock and/or securities by the corporation’s shareholders. It involves only one corporation and the re-configuration of its capital structure.

Stock for stock

Differences in the voting rights, dividend rates, and preference on liquidation are ignored.

Bonds for Bonds

If the principal amount of the bonds received exceeds the principal amount of the bonds surrendered, gain must be recognized.

Stock for Bonds

Exchanges of stock for bonds by shareholders generally do not qualify as “E” reorganization since the shareholders upgrade their investment position. The income is recognized and treated as dividends or capital gains.

“F” Reorganization

“F” reorganization is defined as “a mere change in identity, form, or place of organization of one corporation, however effected.” The “F” reorganization rules normally apply when the corporation changes its name, state of operation, or makes other changes in its corporate charter. In such case, there is a deemed transfer from the old corporation to the new corporation.

“G” Reorganization

“G” reorganization applies to reorganization as part of bankruptcy. It permits the transfer of some or all of the assets of a failing corporation to a new controlled corporation provided the stock and securities of the controlled corporation are distributed to the old corporation’s shareholders under the rules for distributions in a “D” reorganization.

Return to Details of Patterns of Reorganization

To receive our free newsletter, contact us here.

Subscribe our YouTube Channel for more updates.

Alan Olsen, CPA

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.

 

American-Dreams-Show-Accounting-firm-in-ca-cpa-tax-advisors-groco-alan-olsen

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…

Untitled_Artwork copy 4

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.

Posted in
How to Identify and Utilize Your Core Competencies

How to Identify and Utilize Your Core Competencies

  How to Identify and Utilize Your Core Competencies. Over the years in which I’ve been working for GROCO and doing my radio program, American Dreams, I have met with a lot of people, many of whom are counted amongst the most successful and wealthiest individuals in the world. Most of my guests are also…

How to Save Money on Your Social Security Taxes

  Most people look forward to the day when they start to receive the rewards for putting all their hard-earned money over the years into social security. However, some people end up with a lot less than they had planned on because they end up paying more taxes on those benefits than they had expected.…

How Each Presidential Candidate Plans to Handle Corporate Taxes

  If you follow this blog then you know that corporate taxes are a regular topic discussed in this space. A couple weeks ago we shared some comments from Disney Chief Bob Iger regarding the country’s corporate tax policies. This is a topic that continues to get a lot of airtime in the media as…

Keep Your Small Business’s Taxes Small as Well

Keep Your Small Business’s Taxes Small as Well

Keep Your Small Business’s Taxes Small as Well Small Business Owner Do you run a small business? Are your hands always full, or perhaps overflowing? Small business owners never run out of things to do, which means that sometimes certain things get overlooked or put on the back burner, including taxes. Unfortunately, you can’t really…