bailout

bailout
Various procedures whereby the owners of an entity can obtain its profits with favorable tax consequences. With corporations, for example, the bail-out of corporate profits without dividend consequences might be the desired objective. The alternative of distributing the profits to the shareholders as dividends generally is less attractive, since dividend income is taxed as ordinary income.
See preferred stock (preferred stock bailout).
Acquisition of a corporation for the principal purpose of favorable tax consequences by securing benefits of deduction, credit or other allowance which the acquiring corporation would not otherwise enjoy. I.R.C. No. 269
@ bailout stock
When preferred stock is issued as a stock dividend and is non-taxable, it is called bailout stock. I.R.C. No. 305
@

Black's law dictionary. . 1990.

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  • bailout — n. Financial assistance to an ailing business to save it from failure. v. bail out The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008. bailout …   Law dictionary

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  • Bailout — For other uses of the term, see Bailout (disambiguation). In economics, a bailout is an act of loaning or giving capital to an entity (a company, a country, or an individual) that is in danger of failing, in an attempt to save it from bankruptcy …   Wikipedia

  • bailout — Various procedures whereby the owners of an entity can obtain its profits with favorable tax consequences. With corporations, for example, the bail out of corporate profits without dividend consequences might be the desired objective. The… …   Black's law dictionary

  • bailout — /bayl owt /, n. 1. the act of parachuting from an aircraft, esp. to escape a crash, fire, etc. 2. an instance of coming to the rescue, esp. financially: a government bailout of a large company. 3. an alternative, additional choice, or the like:… …   Universalium

  • Bailout — A situation in which a business, individual or government offers money to a failing business in order to prevent the consequences that arise from a business s downfall. Bailouts can take the form of loans, bonds, stocks or cash. They may or may… …   Investment dictionary

  • bailout — UK [ˈbeɪlaʊt] / US [ˈbeɪlˌaʊt] noun [countable] Word forms bailout : singular bailout plural bailouts mainly American money that someone gives or lends to a person or organization with financial problems …   English dictionary

  • Bailout — Das Wort Bail out (auch Bailout, Bail Out) bezeichnet: Bail out (Wirtschaft), die Schuldenübernahme und Tilgung durch Dritte Bail out (Internet), eine Messgröße des Web Publishing Bail out (Luftfahrt), einen Begriff der militärischen Luftfahrt …   Deutsch Wikipedia

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