Purchase a company's tax loss to offset your tax bill

[Mark R]

Apparently, this is the new trick used by the financial masters.

It seems that if a company enters liquidation bankruptcy, then their losses in the years leading up to the bankrutcy are allowable against tax. Apparently, that's an asset that can be bought by hedge funds, pirate equity, etc. to avoid paying tax on their accumulated profits.

What's the betting that if I tried this stunt, i'd have SWAT teams hauling me off to Gitmo or something?

 

[Craig234]

Disgusting. Anything to shift taxes off the rich onto you. I'm sure Congressional Republicans will allow this to be fixed.

 

[KeithP]

Never heard this before. Just did a search and couldn't find anything to indicate it was true. Link?

-KeithP

 

[BarkingGhostar]

Disgusting. Anything to shift taxes off the rich onto you. I'm sure Congressional Republicans will allow this to be fixed.

No different than your neighbors without children subsidizing your child's public education. You had a child by your choice (not you literally), but are not covering 100% of their public education and expect your neighbors to burden that choice.

 

[ch33zw1z]

No different than your neighbors without children subsidizing your child's public education. You had a child by your choice (not you literally), but are not covering 100% of their public education and expect your neighbors to burden that choice.

In fairness, your neighbors do get something out of it. If they put into the public education of the children, then the goal is that those children grow up to be educated, responsible adults who pay their taxes as well...so then those now old people can suckle off those youngin's through retirement.

edit: this reminds me of my town's annual town meeting a couple months ago. Some of the votes were regarding school funding. Who voted No on spending for the school system? Old people, people wearing confederate flag shirts, and people without kids. I lol'd, then I was sad.

 

[CPA]

It seems that if a company enters liquidation bankruptcy, then their losses in the years leading up to the bankrutcy are allowable against tax

Not sure why bankruptcy matters, corporations are allowed to carry forward losses, regardless.

These are deferred tax assets.

 

[Craig234]

No different than your neighbors without children subsidizing your child's public education. You had a child by your choice (not you literally), but are not covering 100% of their public education and expect your neighbors to burden that choice.

No, actually that's very different. That's a bit like taxes at all, people paying for societal benefits. Not simply taking huge shares of wealth for themselves at your expense.

And there's a huge difference where big fortunes are more harmful to society while more children being educated enriches society.

 

[SunnyD]

No different than your neighbors without children subsidizing your child's public education. You had a child by your choice (not you literally), but are not covering 100% of their public education and expect your neighbors to burden that choice.

Did you yourself utilize said public education at some point in the past?

I prefer to think of it as a pyramid scheme. You didn't magically come out of nowhere and become educated by the graces of the universe. Pay your fucking dues and quit bitching.