The Tax Cuts and Jobs Act of 2017 significantly enhanced the tax deductions available for the costs of both new and used property used in a trade or business.  These enhanced deductions -- including 100% immediate deductibility of asset costs -- have caused M&A professionals, including tax professionals, to reassess the value and structure of acquisitions.  This is particularly so where acquisitions are structured as direct asset acquisitions and the tax basis of the assets are stepped-up to the purchase price.  The tax law, however, has long allowed certain stock purchases to be treated as asset purchases for tax purposes, therefore allowing the same basis step-up as if the assets were acquired directly.

Steve Phillips addressed the range of planning options and considerations afforded by these provisions.  In a national webinar hosted and produced by Clear Law Institute LLC, on May 15, 2018, Steve explored IRC Section 338(h)(10) and its utility and value after the TCJA.  His presentation prepared for that webinar can be found here.  The webinar was recorded and can be accessed at Clear Law Institute, LLC.