Gloria Deal's Advanced Tax Corporation Unit 5 Discussion

Gloria Deal's Advanced Tax Corporation Unit 5 Discussion -...

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Topic 1 From the shareholder's tax perspective do you think it would be better for a company to liquidate or reorganize? Explain your position. Professor and Class Main Post, While reading this weeks reading material I learned that if a situation occurres a company comes into a situation they can either reorganize or liquidate depending on the situation at hand and what they can do for that situstion. If the company plans to reorganize it would help them stay in business and they could take care of their debts during a certain time period. However if the business chooes to liquidate they would have to close their doors and are unable to continue doing business. In my opinion the best alternative would be for the compsny to reorganize because they could stay in business and not have to liquidate any thing. Reference: Prentice Halls Federal Taxation (2011); Coporations, Partnerships, Estates and Trusts;
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Unformatted text preview: Kenneth E. Anderson, Thomas R Pope, and John L. Kramer; Prentice Hall, 2011. Topic 2 What do you see as the intent behind Section 332 rules? Professor and Class Main Post, While reading this weeks reading material I learned that the main intent of Section 332 is to show that a corporation gets property from its subsidiaries it shows no gain or loss on the liquidation. However a partent company must own at least 80% of the subsidiaries stock, when the subsidiary is to be liquidated. The purpose of this sections is to help corporations avoid any tax consequences as well as any financial hardships that the could run into. References: Prentice Halls' Federal Taxaction (2011); Coporations, Partnerships, Estates and Trusts; Kenneth E. Anderson, Thomas R Pope, and John L. Kramer; Prentice Hall, 2011....
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