Because a purchaser can use a targets NOL carry forwards to offset the ordinary and capital gain

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Because a purchaser can use a target’s NOL carry forwards to offset the ordinary and capital gain and recapture tax on the sale of the target’s assets, it has been argued that this reduces the cost of achieving a stepped-up basis in assets and makes it advantageous for the purchaser to acquire the target. Do you agree with this argument?
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Taxes And Business Strategy A Planning Approach

ISBN: 9780132752671

5th Edition

Authors: Myron Scholes, Mark Wolfson, Merle Erickson, Michelle Hanlon

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