• Stepping Up Tax Basis in Equity Acquisitions
  • November 19, 2012 | Author: Isaac P. Grossman
  • Law Firm: Morrison Cohen LLP - New York Office
  • Deal makers who regularly seek the advice of tax advisors may come to expect that conventional pieces of tax advice will apply in all circumstances. This may not be the case. One conventional piece of tax advice is to acquire assets, rather than equity, in order to “step up” the tax basis of the acquired business. While extremely helpful, this directive is somewhat naive in today’s world. In many situations, acquisitions of equity can also result in a stepped up asset basis.