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Tax Aspects of Corporate Division
book

Tax Aspects of Corporate Division

by Professor W. Eugene Seago
February 2021
Intermediate to advanced content levelIntermediate to advanced
156 pages
3h 37m
English
Business Expert Press
Content preview from Tax Aspects of Corporate Division

CHAPTER 5

The Trade or Business Requirements

Introduction

To qualify as a nontaxable spin-off, the distributing corporation and the distributed (controlled) corporation must be actively conducting a trade or business immediately after the distribution.1 Furthermore, the trade or business of both corporations must have been actively conducted throughout the 5 years ending on the date of the distribution.2 The exception to this trade or business requirement is made for a corporate holding company that has no assets other than controlled corporations that are actively conducting a trade or business.3

The requirements for the active conduct of a trade or business present another barrier to the repeat of Mrs. Gregory’s attempt to spin off investment ...

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Publisher Resources

ISBN: 9781953349415