EFTA01371392.pdf

Eurc In a pair of recent rulings the IRS addressed the treatment of termination fees Biolc paid as a result of a broken deal. The rulings addressed the payer and payee Floo respectively and held that the payments resulted in capital gain or loss. Ford In prior rulings the IRS had held that such payments represented ordinary deductions Geni providing a tax shield to shelter operating profits. This change in position could saddle Glob a taxpayer with a capital loss upon payment, which is much harder to recognize, and Prop when recognized, only shelters income at capital gain rates. The termination fee at Gold issue in one of the rulings is believed to relate to the terminated 2014 proposed AbbVie How Inc.-Shire Plc merger where a termination fee in excess of $1.5 billion was paid. Based lune upon recent comments by the IRS, it appears they placed significant importance upon the fact that the termination fee was paid under a contract to purchase the stock of a Kasi target, which is generally a capital asset. The answer could be different if the fee is not Kern paid under an executed contract or where the contract is for the acquisition of Mou something other than stock (e.g., operating business assets). King Ligh A silver lining may be found in the fact that the other ruling held the receipt of a Los termination fee would result in capital gain, which if ultimately passed through to an LUXE individual investor would be taxed at favorable capital gain rates. McD Read more about this development and how it may impact the tax treatment of your Nem next break-up or termination fee paid or received, and as always consult your tax Broa advisor. OGI' Roar This article represents the views of the author only and does not necessarily represent Sync the views of PitchBook. T-Sy Tam Share: t ri Ther ezCz Lyft may beat Uber in race to profitability its I thinl a Inv( Airb' Alph Ridesharing company Lyft has long operated in the shadow of its arch-nemesis Uber. Although Lyft has seen growth in many key metrics, such as total rides facilitated, its Angt figures have always seemingly paled in comparison to its $68 billion competitor. Ares Arga Well, it appears that Lyft is possibly beating Uber in one very important way: a path to Bell- profitability. Inve Beta In a new report from The Information, it's revealed... Blac CITI read more Calk Cast Corn Corn CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0064746 CONFIDENTIAL SDNY_GM_00210930 EFTA01371392