Section 338(h)(10) Election Explained for Business Sellers
Section 338(h)(10) election in 2026 converts a stock sale to a deemed asset sale for tax purposes, giving buyers step-up in basis while preserving seller-friendly stock-sale mechanics. Eligibility: target must be an S-corp or C-corp subsidiary in a consolidated group. Day 1/day 2 mechanics: purchase price allocated to assets rather than stock, with recapture triggered […]
Stock Sale vs Asset Sale: Which is Better for Sellers?
Stock sale vs asset sale is the single biggest tax decision most business sellers ever face. Picking the wrong structure on a $10M exit can hand the IRS an extra $1.2M to $1.8M and leave you wondering why your wire was so much smaller than the headline number. This guide walks through the seller-side math, […]