(1) A taxpayer who becomes a member of a water's-edge group, subsequent to an election by the group, will be deemed to have elected and will be bound by the election. Procedures provided in ARM 42.26.302 for renewal of a water's-edge election would apply.

(2) If a water's-edge taxpayer is purchased or otherwise acquired by an entity not subject to tax under 15-31-101, MCA, and whose parent and affiliates are not subject to tax under 15-31-101, MCA, the water's-edge election carries over to each member of the new affiliated group.

(3) If a water's-edge taxpayer is purchased or otherwise acquired by a non-water's-edge taxpayer, who is subject to tax under 15-31-101, MCA, the water's-edge election will be terminated as of the purchase date.

(4) If a water's-edge taxpayer is a party to reorganization, and as a result ceases to exist, the water's-edge election will be terminated as of the date of the reorganization.

(5) If a water's-edge taxpayer is a party to a reorganization, and survives the reorganization, the water's-edge election carries over to the new affiliated group. Procedures provided for in ARM 42.26.302 for renewal of a water's-edge election would apply.