How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Marvin,EA Your Own Question
Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1672
Experience:  Enrolled to Represent Taxpayers Before The IRS
Type Your Tax Question Here...
Marvin,EA is online now
A new question is answered every 9 seconds

Beazer homes just noted in a press release that because there

Resolved Question:

Beazer homes just noted in a press release that because there was an "ownership change" in their stock as defined by SEc 382 they would be precluded from using NOLs. What is the most likely explanation for what occurred.
Submitted: 7 years ago.
Category: Tax
Expert:  Marvin,EA replied 7 years ago.
Hello and thanks you for using Just Answer. After an ownership change, the amount of income that a corporation may offset each year be preacquisition NOL carry forwards is generally limited to an amount determined by multiplying the value of the equity of the corporation just prior to the ownership change by the federal long-term tax-exempt rate in effect on the date of the change (Code Sec. 382(b)(1). Any unused limitation may be carried forward and added to the next year's limitation. In addition, NOL carry forwards are eliminated completely unless the business continuity requirements for reorganizations are satisfied for the two-year period following the ownership change.
Marvin,EA and 2 other Tax Specialists are ready to help you

Related Tax Questions