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In this section we present you with short newsletters containing
timely and useful information. |
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Use a loss to your best advantage. |
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Net operating losses explained and other tips presented here. |
Your company can carry a net operating loss from 2001 or 2002 back
for five years and any unused remainder forward for twenty years, or
just carry the loss forward for up to twenty years. How? When it
suits your purpose, you can elect to forgo the carry-back and carry
the entire loss forward. This election is irrevocable, so first
figure out the tax benefit from a carryback vs. the expected benefit
from using the loss to reduce future taxable income. Then compute
the time value of having a refund of tax paid in prior years instead
of future tax benefits. Finally, factor in any tax credits your
company will gain or lose and the effect of Alternative Minimum Tax
(AMT).
Sound complicated? It is! We will be happy to help you with the
math. We use state of the art computer programs to do the complex
calculations involved in making decisions about tax loss carrybacks
and AMT calculations. You can know which option is best for you the
same day you ask the question. Just
Contact Us.
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