If the application is still pending with the IRS on the date of sale, the transferee
must withhold the correct amount of tax, but the amount withheld does not have to be reported and paid immediately.
The planning opportunity, of course, is that if the transferor is exempt from taxation (either under section 501 or as a foreign person), the gain is not taxed but the transferee
will obtain a basis increase.
362(e) (2)(C) election is made, the final regulations provide that the basis reduction in the transferee
stock is an expenditure or expense of the transferor partnership or S corporation, thus resulting in a share-holder/partner-level basis reduction.
Under this construct, if the amount the transferee
pays for its partnership interest equals the fair market value of its share of the partnership's assets, the transferee
's share of any gain or loss on a subsequent sale of partnership assets should be limited to its share of any increase or decrease in the value of the partnership assets that occurs after the transferee
's entry into the partnership.
19, 2008, Sandra Shockley, Terry Shockley, and Shockley Holdings brought separate petitions in Tax Court for redetermination of their respective transferee
liability, which the Tax Court consolidated.
If more than 80 percent of the assets of the transferee
were Listed Assets, the transfers would be taxable.
PorchLight believes this is the best approach for making the move successful for not only the transferees
and their families but for their employers as well.
6901 provides that the liability, at law or in equity, of a transferee
of property "shall .
One of the first questions a transferee
has is "What are my housing options?
312-10, in all other cases in which property is transferred from one corporation to another and no gain or loss is recognized (or is recognized only to the extent of the property received other than that permitted to be received without the recognition of gain), no allocation of the earnings and profits of the transferor is made to the transferee
threats to staff will not be tolerated by service providers, nor will action to coerce other transferees
Servicers must review the way the servicing file is compiled to ensure all necessary information moves with the file to the transferee
and to retain copies of any information it may need to satisfy its own retention, legal and regulatory obligations.