Section 368 Reorganizations

Section 368 of the Internal Revenue Code defines specific types of corporate reorganizations that allow companies to restructure their ownership without triggering immediate tax consequences. This includes mergers, consolidations, and acquisition of assets or stock. Essentially, these transactions can be executed in a way that defers taxes for the companies involved and their shareholders, facilitating smoother transitions and maintaining the economic continuity of the businesses. The section outlines various requirements and types of reorganizations, ensuring that they meet certain legal and financial criteria to qualify for these tax benefits.