338(h)(10)
A joint tax election that treats a qualifying stock sale as an asset sale for federal income-tax purposes.
Last updated September 5, 2026
A section 338(h)(10) election (when available) lets certain stock purchases be treated as asset purchases for tax, giving the buyer a step-up in inside basis while the sellers are taxed in a specific way. It requires eligible sellers and a timely joint election; it is not automatic. Main Street buyers should treat it as a tax-structuring topic for counsel, not a listing feature. State treatment can differ from federal.