A new client sold a subsidiary for a $110 million gain, and hired a regional CPA firm to prepare the tax returns to report the §338(h)(10) gain, a transaction in which the sale of stock gets treated as the sale of assets for tax purposes. The regional firm prepared the California return, reporting a $1 million tax. The company agreed to Barnwell’s review prior to mailing the state return.
We understood a nuance in California law – that based on a recent General Counsel ruling the company could treat the transaction as the sale of stock. This resulted in virtually no liability in California for the seller, discovered just in the nick of time and saving the client $1 million.
Learn how we can find tax savings like this for your company. Contact us today for a complimentary consultation.