QUESTION

Net Operating Loss Carryovers

Asked on Jan 25th, 2013 on Taxation - Texas
More details to this question:
My corp has $25MM in NOLs and has been approached by a group who have offered to buy the NOLs from the corp giving us some needed working capital. Can this be done legally?
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1 ANSWER

Robert Barnhill III
Alan - I.R.C. section 382 limits the ability of a corporation to sell itself to another person and allow the buyer of the corporation to use the corporation's NOL.  I would proceed very cautiously before I accepted any money from the group.  You should talk with someone locally, like your CPA, before entering into any agreement.
Answered on Jan 25th, 2013 at 5:57 PM

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