FTB clarifies apportionment method for IRC §338(g) election - Spidell

FTB clarifies apportionment method for IRC §338(g) election


Gain realized as a consequence of a corporation making an IRC §338(g) election to have the target foreign corporation’s sale of stock treated as a sale of assets, is apportioned to California using the target corporation’s apportionment formula. (FTB Chief Counsel Ruling 2019-02)