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Business Taxes Law Guide—Revision 2024
Sales and Use Tax Annotations
A B C D E F G H I J L M N O P R S T U V W X
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395.0000 Occasional Sales—Sale of a Business—Business Reorganization—Regulation 1595
Annotation 395.1624
(h) Ownership "Substantially Similar"—"Real or Ultimate" Ownership
395.1624 Loans as Equity. A person holds both common stock and a note of a corporation. For purposes of determining whether a transfer of assets from the corporation to the person meets the substantial change in ownership requirement to qualify the transaction as an exempt occasional sale, only the stock ownership will be considered. The fact that the Internal Revenue Service may assert that a person advancing money to a corporation which is in dire financial need acquires an ownership interest does not convert a transaction cast as a loan to an equity purchase for Sales and Use Tax purposes. 4/17/75.