Question

What is the current treatment for tax purposes for net operating losses?  Discuss the history of the treatment of operating losses?  Why does the government  change its view of corporate income/loss?  Name the government acts that discuss these laws and the dates involved.

what constitutes "significant influence" when an investors financial interest is below the 50% level? How does having significant influence  affect the records of a company and the investment it holds?

Answer 1

Using NOL incurred in other tex years) I to seduce taxable income in the I curent year Per TCJA NOL's for tax year beginning In 2018 & Onwards may be carry forward indefinately but may be deducted only upto 80% of taxable income However, carryback is no longer allowed Conly Not attributable to feming losses is allowed a 2 year carrybace] For Nols of years prior to 2018 , earlier neles apply 2 year carryback 120 year carsyfarwald sule applies Deductible upto 100% of taxable income

If the finanual interest is aboue 20%. but less than 20% then it constitutes significant influence As pee US GAAP, inuestes records the investment as per equity method that means inuesta will record @ propeebonate income as increase in éaming & investment chi Dividend income as decrease in investment value.