Laws, Regulations and Annotations

Search

BTLG Table of Contents > Sales and Use Tax Annotations > O > 395.0000 Occasional Sales > Annotation 395.0072

Sales and Use Tax Annotations

A    B    C    D    E    F    G    H    I    J    L    M    N    O    P    R    S    T    U    V    W    X   

---

O

---

395.0000 Occasional Sales—Sale of a Business—Business Reorganization—Regulation 1595

Annotation 395.0072

(a) In General

---

395.0072 Sales of Stock Treated as Sales of Assets Under Revenue and Taxation Code Section 24518. The purchaser of a corporation's capital stock elected to treat the transaction, for income tax purposes only, as a sale and purchase of the assets of the target corporation under section 24518 of the Revenue and Taxation Code. If there is no transfer of title in the assets of the target corporation to another separate entity or person when the election is made by the buyer of the stock under section 24518, the sale and purchase of the target corporation's stock will be treated for purposes of the sales and use tax law as a nontaxable transfer of stock rather than a sale of tangible personal property which is subject to tax. 1/28/85.