February 2021
Intermediate to advanced
156 pages
3h 37m
English
Content preview from Tax Aspects of Corporate Division
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Corporate Division: Uses and Abuses
Introduction
This book is about the tax consequence of dividing a corporation into two or more corporate entities. The division usually takes the form of a spin-off, split-off, or a split-up.
In a spin-off, a corporation distributes to its shareholders a controlling in the stock of a subsidiary. In another form of a spin-off, a corporation may transfer some of its assets to a newly formed corporation in exchange for all of the corporation’s stock, which the parent corporation distributes to its shareholders. For the shareholder, the spin-off is equivalent to a dividend in the form of stock in another corporation, and for the distributing corporation, the spin-off is economically equivalent to paying ...