I'm looking at a deal now involving a target that's a C corp. Seller is pushing for a stock purchase/a stock purchase would be easier given the company's contracts and licenses.
From my understanding the 336e and 338h10 elections are only for the acquisition of S corp. Can anyone confirm is this is true and speak to if there is something like the 336e election for the acquisition of a C corp?
336e election for C corps?
by a searcher from University of Pennsylvania - The Wharton School
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2. With the selection, you, and the seller, have an Asset purchase for tax purposes with the benefit of Stock for contracts, IP etc.
3. Stock purchase price is usually lower than Asset purchase price.
4. Asset sale for a C Corp could be very expensive. Seller will be faced with double taxation. This could be much higher than the ordinary income resulting from step-up of fixed assets.