Questions and Answers
What is the primary purpose of the quantitative test in determining whether a deal involves all or substantially all of a company's assets?
To calculate the total revenue generated by the assets
What is the main distinction between a C-Corporation and an S-Corporation?
Tax treatment of income
Which type of income is derived from selling capital assets for a profit?
Capital Gains Income
What is the primary characteristic of a Limited Liability Company (LLC) for tax purposes?
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Which type of deal structure is used to keep all liabilities at the subsidiary level?
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What is the main consideration for determining whether a deal requires internal approval in a share deal?
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What determines whether a sale is classified as a capital gain or an ordinary asset?
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How are capital gains taxed when the seller is a disregarded entity, such as an S-Corp or LLC?
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What happens to the proceeds of a sale when a non-liquidating distribution is made?
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What is the tax implications for a shareholder who receives a non-liquidating distribution of $50,000, with a tax basis of $10,000?
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According to Section 301 of the IRS code, how is a non-liquidating distribution taxed?
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What is the benefit of being a natural person shareholder who holds shares for more than 12 months?
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What is the primary reason a buyer might opt for an asset deal over a share deal?
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What is the purpose of filing a Schedule 13D with the SEC?
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What is the tax implication of a liquidating distribution in an asset deal?
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What is the difference between a non-liquidating distribution and a liquidating distribution?
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What is the purpose of the NERD WALLET tax calculator?
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What is the primary advantage of reducing the purchase price and salary through an earnout?
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