How Effective Tax Planning Can Increase the Tax Benefits of Corporate NOLs

Journal of Taxation, Volume 120, Number 2, February 2014

16 Pages Posted: 17 Aug 2014

See all articles by John Everett

John Everett

Virginia Commonwealth University (VCU) - Department of Accounting

Cherie Hennig

University of North Carolina (UNC) at Wilmington - Department of Accountancy and Business Law

William A. Raabe

University of Wisconsin - Whitewater - College of Business and Economics

Blaise Sonnier

University of Colorado, Colorado Springs - College of Business

Date Written: March 4, 2014

Abstract

Factors such as the dividends-received deduction, the corporate AMT, and the Section 382 loss rules complicate the computation of NOLs and affect decisions needed in determining whether to carry the loss back.

The NOL procedures provide an effective means of averaging the cyclical swings of profitable and nonprofitable tax years. Without these provisions, taxpayers would in effect "waste" excess deductions that occur in one tax year.

Keywords: net operating loss, NOL, corporate income tax, corporate tax, corporate AMT, dividends received, carryover, carryback, carryforward, tax loss

JEL Classification: H20, H25, K34

Suggested Citation

Everett, John and Hennig, Cherie and Raabe, William A. and Sonnier, Blaise, How Effective Tax Planning Can Increase the Tax Benefits of Corporate NOLs (March 4, 2014). Journal of Taxation, Volume 120, Number 2, February 2014. Available at SSRN: https://ssrn.com/abstract=2481152

John Everett

Virginia Commonwealth University (VCU) - Department of Accounting ( email )

Richmond, VA 23284
United States

Cherie Hennig

University of North Carolina (UNC) at Wilmington - Department of Accountancy and Business Law ( email )

601 S. College Road
Wilmington, NC 28403
United States

William A. Raabe (Contact Author)

University of Wisconsin - Whitewater - College of Business and Economics ( email )

Whitewater, WI 53190
United States

HOME PAGE: http://billraabetax.com

Blaise Sonnier

University of Colorado, Colorado Springs - College of Business ( email )

1420 Austin Bluffs Parkway
Colorado Springs, CO 80933-7150
United States

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