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The Seller’s Playbook

Glossary · Part 2, Going to Market

338(h)(10) election

A tax election that treats a legal stock sale as an asset sale for tax purposes, giving the buyer a step-up in basis. It is generally available only when the target is a qualifying S corporation or corporate subsidiary, and it requires both sides’ consent.

Where it shows up in the book

Look it up in a sentence, then read the chapter

Nothing in the book needs a dictionary of jargon to follow, but when a piece of deal language shows up, this is where it is defined. The chapters hold the reasoning.