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"Some of them were able to make a tax-free conversion because they could use the net operating losses to pay the taxes".
As for the tax consequences, the corporation expects to use the net operating losses accumulated over the life of the co-op to offset any taxable gain generated by the conversion substantially, said Albert Feuer, the tax lawyer for the corporation.
Much of the coverage of the leaked returns has concerned whether Mr. Trump was able to use the net operating loss deduction to avoid paying federal income tax for nearly two decades.
Similar(57)
N would have reported $7,500 of tax liability for 1990 if it were not for use of the net operating loss carryover (NOLCO).
It plans to use the net proceeds to expand, including marketing, and to cover operating losses.
Limiting the net operating loss deduction.
Divide the net operating income by the purchase price.
In 2014, the "Net Operating Revenues" showed a $2.58 billion loss, while the "Net Operating Income" had a loss of $1.7 billion.
Subtract the net operating loss from the operating income.
However, according to longstanding tax laws, if a company files for bankruptcy or is taken over, it loses the ability to use its net operating losses.
However, according to longstanding securities laws, if a company files for bankruptcy or is taken over, it loses the ability to use its net operating losses.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com