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Looking at Historic Businesses Through an NOL Lens

As companies emerge from the financial crisis and begin to consider applying NOLs against taxable income, two older court rulings seem more relevant than ever.

March 15, 2010

When a corporation with net losses undergoes an ownership change, within the meaning of the tax code's Section 382(g), limits are imposed on the amount of taxable income¹ that may be offset by the company's prechange losses. This limit is known as the "Section 382 limitation" and it is calculated by multiplying the fair-market value of the loss corporation's stock, immediately before the ownership change, by the long-term tax-exempt rate. Read more...

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More Mergers and Acquisitions Articles

Goodwill Impairment: Open to Interpretation, Again
Companies and auditors are clamoring for clarification about measuring goodwill impairment. March 11, 2010
Do-It-Yourself M&A
Companies should limit their reliance on consultants when executing mergers, says the CFO of Thomson Reuters. March 10, 2010
The Shortest Distance to Cash
Supply-chain strategies now include clever ways to improve cash flow. March 1, 2010
An Eye-Opening IPO
How network-security company Fortinet pulled off a solid offering in a shaky market. February 23, 2010
Detroit Breakdown: IRS Denies Spin-off Treatment
In what appears to be a case about a Ford Motor Co. tax-free spin-off, the IRS says payments "originating" as a result of the transaction should be included in gross income. February 22, 2010
Tech Deals Come Alive
Despite a flat revenue outlook for 2010, pent-up demand unleashes an M&A flurry in the sector. February 19, 2010
Obama Budget to Spark Tax Debates
President Obama's proposed 2011 budget is replete with tax proposals, many that are "hostile" to business. Here's a breakdown of the potential changes. February 16, 2010
Middle-Market Deals: All Systems Go
It could be a boom year for midsize M&A, with conditions significantly improved since last fall. February 11, 2010
Spreadsheets and Banking Fee Deductions
Determining whether "success-based" banking fees are deductible in M&A transactions takes some patience. But in a hypothetical case, the IRS ruled on how to treat the work of an accounting firm that was not directly involved in the deal. February 8, 2010