DESCRIPTION
This module provides an overview of the U.S. federal income tax implications of mergers and acquisitions, with a focus on asset versus stock transactions. It covers key concepts including asset classification, depreciation recapture, and the characterization of gains and losses. The module also addresses deferral strategies such as like-kind exchanges and installment sales, including related-party considerations. Through examples and case studies, participants analyze how transaction structure impacts tax outcomes.
LEARNING OBJECTIVES
- Analyze the tax consequences of an asset sale vs. a stock sale.
- Identify and differentiate the classifications of assets.
- Calculate depreciation recapture and Section 1231 gains and losses.
- Apply the income deferral rules for like-kind exchanges and installment sales.
- Calculate installment sale income and tax basis of property received in a like-kind exchange.
- Analyze related-party transaction rules and their impact on gain or loss recognition.
