ACC565 Tax Issue of Net Operating Losses

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Question Description

Discussion Topic: Consolidated Net operating Losses and Tax Returns

  • Evaluate the impact of the Tax Cuts and Jobs Act (TCJA) on the net operating losses. (See the attach file for details)

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Class Discussion Topic

Consolidated Net Operating Losses and Consolidated Tax Returns" 


Imagine that a client is pursuing the acquisition of Corporation A that has a substantial net operating loss. Corporation B is a member of the controlled group and is currently included in the consolidated tax return that also has a net operating loss. Analyze the potential advantages and disadvantages of Corporation B’s acquisition of Corporation A and Corporation A’s subsequent inclusion in Corporation B’s consolidated tax return. Suggest the key tax issues the client should consider in determining the deductibility of the net operating losses. Evaluate the impact of the Tax Cuts and Jobs Act (TCJA) on the net operating losses. Make sure you discuss all components. 350 to 500 words

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Class Discussion Topic Consolidated Net Operating Losses and Consolidated Tax Returns" • Imagine that a client is pursuing the acquisition of Corporation A that has a substantial net operating loss. Corporation B is a member of the controlled group and is currently included in the consolidated tax return that also has a net operating loss. Analyze the potential advantages and disadvantages of Corporation B’s acquisition of Corporation A and Corporation A’s subsequent inclusion in Corporation B’s consolidated tax return. Suggest the key tax issues the client should consider in determining the deductibility of the net operating losses. Evaluate the impact of the Tax Cuts and Jobs Act (TCJA) on the net operating losses. Make sure you discuss all components. 350 to 500 words ...
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Tutor Answer

JesseCraig
School: Carnegie Mellon University

Attached.

Running head: TAX ISSUES OF NET OPERATING LOSSES

TAX ISSUES OF NET OPERATING LOSSES
Name:
Institution affiliation:
Date:

1

TAX ISSUES OF NET OPERATING LOSSES

2

TAX ISSUES OF NET OPERATING LOSSES
Advantages and disadvantages of Corporation B’s acquisition of Corporation A and
Corporation A’s subsequent inclusion in Corporation B’s consolidated tax return
Corporation B will take advantage of corporation A’s net operating losses by carrying the
loss forward against future incomes over a period of 20 years after purchasing the company A.
There will also be no tax on intercompany distributions and Corporation B can utilize the unused
tax credit of company A once included in B’s consolidated tax returns. One of the setbacks the
client may face is the possibility of acc...

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Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

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