N.J.A.C. 18:7-5.8 - Calculation of Gain in Certain Instances

(a) A selling parent corporation in an I.R.C. § 338(h)(10) transaction does not recognize gain on the sale of target stock for New Jersey purposes for acquisition dates occurring on or after January 14, 1992.

(b) Where a target corporation recognizes gain as the result of an I.R.C. § 338(h)(10) election, the target reports and pays tax on such gain pursuant to N.J.A.C. 18:7-5.1(a).

(c) Where the target and purchaser corporations are members of the same combined group reporting on the same New Jersey combined return as the parent corporation and continue as members of the same combined group reporting on the same New Jersey combined return in subsequent privilege periods, no gain is recognized for New Jersey purposes, unless such gain would be recognized and taxed for Federal purposes had the corporations been filing a Federal consolidated return together.