The new rules also attempt to clarify the meaning of "indirect acquisition" of properties and ownership "by reason of" holding stock in the domestic corporation (or an interest in the domestic partnership).
A foreign corporation acquires (directly or indirectly) substantially all of the properties of a domestic corporation (or the trade or business of a domestic partnership);
are going to have free rein on a global level, then there must be a counter balance--a "New Deal for the global economy" --to protect the environment, establish labor standards, temper the rush toward genetic engineering, and so on.
Writing for the Court, Justice Breyer began by saying "the basic question is whether the franchise tax Alabama asserts on foreign corporations
violates the Commerce Clause.
As a result, where Blackacre and Whiteacre are transferred to separate corporations
, as in the previous example, each corporation
has a basis of $2 million in its respective property.
As part of the amalgamation, the Corporation
intends to apply for a Certificate of Continuance to continue the Corporation
from the Business Corporations
Act (Ontario) to the Business Corporations
This case study has been adapted from PPC's Tax Planning Guide--S Corporations
, 20th Edition, by Andrew R.
To be an S corporation
, a corporation
must make a subchapter S election by no later than the fifteenth day of the third month of the taxable year for which the election is to be effective.
In addition, a plan (or series of related transactions) will not cause gain recognition under the new provision if, immediately after the completion of the plan or transaction, the distributing and controlled corporations
are members of the same affiliated group.
Instead of paying straight cash, or establishing reservations (as had been done with tribes in the lower 48 states), Congress created native corporations
to manage the lands and money turned over in the settlement.
This represents a 128 net increase of S Corporations
67) Because many S corporations
use the cash method, this exception will not be very helpful.