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 Form 14234 Rev 1 Compliance Assurance Process CAP Application 2024

Cap Application 2024-2025 Form

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in this video we're going to talk about typec tax-free reorganizations so in a typec taxfree reorganization you basically have the purchasing Corporation in this case let's say it's jalapeno pancakes a restaurant chain they are going to transfer voting stock and possibly some boot now how much boot well it has to be at least 80% of the consideration being voting stock so the other 20% could be cash or something like that however there's an exception if they're assuming any liabilities so let's say jalapeno pancakes is assuming liabilities from the target Corporation then in that case the amount of consideration that can be boot that 20% is reduced dollar for dollar for each liability that they assume and actually if they're assuming so many liabilities from the Target that the amount of liabilities actually exceeds 20% of the consideration the total consideration being given then basically jalapeno pancakes has no choice but to gi

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