Overview
Jay Singer discussed the new tax bill’s impact on corporate restructurings. With full expensing under the bill, the seller would not have any basis in a write-off’s assets during the first year, so the seller would have deemed sale gain to the full market value of the target. The buyer acquires immediate basis with an immediate write-off. “In a deal context, this will materially change the math in negotiating how much a buyer might be willing to pay a seller to make that election,” Mr. Singer said.