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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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O


395.0000 Occasional Sales—Sale of a Business—Business Reorganization—Regulation 1595

Annotation 395.1400

(g) "Substantially all the Property"—Transfer of


395.1400 Part of Property or Segment of Business Transferred. The sale of equipment by a corporation to a stockholder for the stockholder's capital stock in the corporation is subject to tax.

The sale does not qualify as an occasional sale for the reason that the corporation is to continue in business and is only transferring a portion of its assets. Secondly, the ownership of the property transferred will be in one former stockholder who was not the major stockholder in the corporation. 1/7/53.