08-25-2003, 12:10 PM
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 Re: Tax Free Merger and Treatment of Depreciable Assets under IRC "Dave Woods, EA" <d.woods[at]verizon.net> wrote: - quote - > "Michael Schreiber" <nova_mike23[at]hotmail.com> wrote:
Thanks, I spent too much time looking in IRC §368 and 1223(2).> > I have a question regarding the treatment of fixed assets in > > a tax-free merger under IRC 368(a). If the Company being > > acquired has an asset with a Basis of $1,000 and accumulated > > depreciation of $200 with a 5 year life, with 4 years > > remaining on the life, how do you book the asset on the > > Acquiror's Books. Do you record the asset at $800 and start > > depreciation again at 5 years or keep the orginial basis, > > accumulated depreciation and holding period from the Target > > Company. Please respond with a cite to a IRC code section > Normally I would not respond with a cite...but since you > asked so politely, your answer is found at IRC 381[c) (6). << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
08-22-2003, 09:24 PM
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| Re: Tax Free Merger and Treatment of Depreciable Assets under IRC "Michael Schreiber" <nova_mike23[at]hotmail.com> wrote: - quote - > I have a question regarding the treatment of fixed assets in
Normally I would not respond with a cite...but since you> a tax-free merger under IRC 368(a). If the Company being > acquired has an asset with a Basis of $1,000 and accumulated > depreciation of $200 with a 5 year life, with 4 years > remaining on the life, how do you book the asset on the > Acquiror's Books. Do you record the asset at $800 and start > depreciation again at 5 years or keep the orginial basis, > accumulated depreciation and holding period from the Target > Company. Please respond with a cite to a IRC code section asked so politely, your answer is found at IRC 381[c) (6). -- David M. Woods, EA Boston, MA 02109 Postings here are general information only and not to be relied upon as advice. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| assets, depreciable, free, irc, merger, tax, treatment |
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