Get Form 8023 2020-2024

Purchasing corporations use this form to make elections under section 338 for the target corporation if they made a qualified stock purchase (QSP) of the target corporation.

A copy of Form 8023 must be attached to the final income tax return of the old target, to the first income tax return of the new target, and to the income tax return of the purchasing corporation for its tax year that includes the acquisition date; but failure to do so will not invalidate a section 338 election.

Generally, a purchasing corporation must file Form 8023 for the target. If a section 338(h)(10) election is made for a target, Form 8023 must be filed jointly by the purchasing corporation and the common parent of the selling consolidated group (or the selling affiliate or an S corporation shareholder(s)).

Purchasing corporations use this form to make elections under section 338 for the target corporation if they made a qualified stock purchase (QSP) of the target corporation.

Purpose of Form Use Form 8023 to make elections under section 338 for a corporation (the “target” corporation) if the purchasing corporation has made a qualified stock purchase (QSP) of the target corporation.

A copy of Form 8023 must be attached to the final income tax return of the old target, to the first income tax return of the new target, and to the income tax return of the purchasing corporation for its tax year that includes the acquisition date; but failure to do so will not invalidate a section 338 election.

—A qualified stock purchase is the purchase of at least 80% of the total voting power and value of the stock of a corporation by another corporation during a 12-month acquisition period.

Generally, a purchasing corporation must file Form 8023 for the target. If a section 338(h)(10) election is made for a target, Form 8023 must be filed jointly by the purchasing corporation and the common parent of the selling consolidated group (or the selling affiliate or an S corporation shareholder(s)).

More In Forms and Instructions Use Form 8883 to report information about transactions involving the deemed sale of corporate assets under section 338. This includes information previously reported on Form 8023, Elections Under Section 338 for Corporations Making Qualified Stock Purchases.

Purpose of Form Use Form 8023 to make elections under section 338 for a corporation (the “target” corporation) if the purchasing corporation has made a qualified stock purchase (QSP) of the target corporation.

A copy of Form 8023 must be attached to the final income tax return of the old target, to the first income tax return of the new target, and to the income tax return of the purchasing corporation for its tax year that includes the acquisition date; but failure to do so will not invalidate a section 338 election.

—A qualified stock purchase is the purchase of at least 80% of the total voting power and value of the stock of a corporation by another corporation during a 12-month acquisition period.

Section 338(g) Election The election is made unilaterally by the acquirer after purchasing stock from the target's shareholders. The acquirer generally bears the incremental tax burden from the gain on the deemed sale of the target's assets.

More In Forms and Instructions Use Form 8883 to report information about transactions involving the deemed sale of corporate assets under section 338. This includes information previously reported on Form 8023, Elections Under Section 338 for Corporations Making Qualified Stock Purchases.

A Section 338 election is useful when the buyer has a good business reason to acquire stock rather than assets (e.g., difficulty in re-assigning licenses or permits), but the buyer still wants the tax benefits of an asset acquisition.

A copy of Form 8023 must be attached to the final income tax return of the old target, to the first income tax return of the new target, and to the income tax return of the purchasing corporation for its tax year that includes the acquisition date; but failure to do so will not invalidate a section 338 election.

A copy of Form 8023 must be attached to the final income tax return of the old target, to the first income tax return of the new target, and to the income tax return of the purchasing corporation for its tax year that includes the acquisition date; but failure to do so will not invalidate a section 338 election.

Section 338(g) Election The election is made unilaterally by the acquirer after purchasing stock from the target's shareholders. The acquirer generally bears the incremental tax burden from the gain on the deemed sale of the target's assets.

Form 8838 is used for gain recognition agreements under Internal Revenue Code sections 367(a) and 367(e)(2).

A Section 338 election is useful when the buyer has a good business reason to acquire stock rather than assets (e.g., difficulty in re-assigning licenses or permits), but the buyer still wants the tax benefits of an asset acquisition.

More In Forms and Instructions Use Form 8883 to report information about transactions involving the deemed sale of corporate assets under section 338. This includes information previously reported on Form 8023, Elections Under Section 338 for Corporations Making Qualified Stock Purchases.

A copy of Form 8023 must be attached to the final income tax return of the old target, to the first income tax return of the new target, and to the income tax return of the purchasing corporation for its tax year that includes the acquisition date; but failure to do so will not invalidate a section 338 election.

Form 8838 is used for gain recognition agreements under Internal Revenue Code sections 367(a) and 367(e)(2).

More In Forms and Instructions Use Form 8883 to report information about transactions involving the deemed sale of corporate assets under section 338. This includes information previously reported on Form 8023, Elections Under Section 338 for Corporations Making Qualified Stock Purchases.

Purchasing corporations use this form to make elections under section 338 for the target corporation if they made a qualified stock purchase (QSP) of the target corporation.

A copy of Form 8023 must be attached to the final income tax return of the old target, to the first income tax return of the new target, and to the income tax return of the purchasing corporation for its tax year that includes the acquisition date; but failure to do so will not invalidate a section 338 election.

Generally, a purchasing corporation must file Form 8023 for the target. If a section 338(h)(10) election is made for a target, Form 8023 must be filed jointly by the purchasing corporation and the common parent of the selling consolidated group (or the selling affiliate or an S corporation shareholder(s)).

Purpose of Form Use Form 8023 to make elections under section 338 for a corporation (the “target” corporation) if the purchasing corporation has made a qualified stock purchase (QSP) of the target corporation.

—A qualified stock purchase is the purchase of at least 80% of the total voting power and value of the stock of a corporation by another corporation during a 12-month acquisition period.

More In Forms and Instructions Use Form 8883 to report information about transactions involving the deemed sale of corporate assets under section 338. This includes information previously reported on Form 8023, Elections Under Section 338 for Corporations Making Qualified Stock Purchases.

A copy of Form 8023 must be attached to the final income tax return of the old target, to the first income tax return of the new target, and to the income tax return of the purchasing corporation for its tax year that includes the acquisition date; but failure to do so will not invalidate a section 338 election.

Section 338(g) Election The election is made unilaterally by the acquirer after purchasing stock from the target's shareholders. The acquirer generally bears the incremental tax burden from the gain on the deemed sale of the target's assets.

A Section 338 election is useful when the buyer has a good business reason to acquire stock rather than assets (e.g., difficulty in re-assigning licenses or permits), but the buyer still wants the tax benefits of an asset acquisition.

A copy of Form 8023 must be attached to the final income tax return of the old target, to the first income tax return of the new target, and to the income tax return of the purchasing corporation for its tax year that includes the acquisition date; but failure to do so will not invalidate a section 338 election.

Form 8838 is used for gain recognition agreements under Internal Revenue Code sections 367(a) and 367(e)(2).

More In Forms and Instructions Use Form 8883 to report information about transactions involving the deemed sale of corporate assets under section 338. This includes information previously reported on Form 8023, Elections Under Section 338 for Corporations Making Qualified Stock Purchases.