Asset Basis in Acquisitive Asset Reorganizations: General Utilities Hangover

20 Pages Posted: 4 Aug 2018  

David Hasen

University of Florida Levin College of Law

Date Written: August 2, 2018

Abstract

The rules that govern the tax basis and, by extension, the holding period of property received by an acquired corporation in an acquisitive reorganization are an unlovely patchwork that emerged from major changes to the tax law in 1986 and 1988. They not only fail to provide clarity but also do not reflect the fact that the acquired corporation, to the extent it engages in post-reorganization activity pursuant to the overall plan of reorganization, is in substance the agent of the acquiring corporation. Congress should amend the reorganization provisions to reflect this circumstance.

Keywords: Asset Basis, Reorganizations, Income Tax, Corporate Tax

JEL Classification: H25, K34

Suggested Citation

Hasen, David, Asset Basis in Acquisitive Asset Reorganizations: General Utilities Hangover (August 2, 2018). Available at SSRN: https://ssrn.com/abstract=3225351 or http://dx.doi.org/10.2139/ssrn.3225351

David Hasen (Contact Author)

University of Florida Levin College of Law ( email )

P.O. Box 117625
Gainesville, FL 32611-7625
United States

HOME PAGE: http://https://www.law.ufl.edu/faculty/david-hasen

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