This is a split board - You can return to the Split List for other boards.

Faecesbook to get $429 million tax refund for 2012 despite $1 billion in profits

#21BornIn1142Posted 2/18/2013 2:34:50 PM
Clearly, this money is better off spent on giving exectives million-dollar bonuses for doing nothing.
---
Look! It's Enrico Palazzo!
#22y2jay15944_GFPosted 2/18/2013 2:45:53 PM(edited)
Corporations received refunds during the years of 2008-2011 because many of them lost money prior to making profits. This is called NOL. You can't be taxed on losses, so the government lets you move those losses into the future to offset your tax liability on future profits. Say you lost 30,000,000 in 2008. In 2009 you made 1,000,000. You get offset that with some of the negative 30,000,000 from 2008. It makes sense and keeps cash flow at an optimal rate.

Now, as for Facebook, I do dislike this loophole.

Source: Being a corporate tax accountant.
#23xeionpPosted 2/18/2013 3:40:13 PM
I do not have a problem with this, it seems this only happen because stock compensation was treat the same as cash compensation.
---
Superman loves Louis Lane and Spider-Man loves Mary Jane Watson-Parker
DC and Marvel are equally disassociate with their fan base.
#24iGenesis(Topic Creator)Posted 2/18/2013 3:53:32 PM
From: y2jay15944_GF | #022
Corporations received refunds during the years of 2008-2011 because many of them lost money prior to making profits. This is called NOL. You can't be taxed on losses, so the government lets you move those losses into the future to offset your tax liability on future profits. Say you lost 30,000,000 in 2008. In 2009 you made 1,000,000. You get offset that with some of the negative 30,000,000 from 2008. It makes sense and keeps cash flow at an optimal rate.

Real people can only deduct $3K/year for capital gains losses. But corporations are people too, right?
---
GameFAQs.com: Where YOU make the content, but CBS makes the money.
http://lueshi.info/Mario_Zelda_Tier_List.gif
#25y2jay15944_GFPosted 2/18/2013 3:56:46 PM
iGenesis posted...
From: y2jay15944_GF | #022
Corporations received refunds during the years of 2008-2011 because many of them lost money prior to making profits. This is called NOL. You can't be taxed on losses, so the government lets you move those losses into the future to offset your tax liability on future profits. Say you lost 30,000,000 in 2008. In 2009 you made 1,000,000. You get offset that with some of the negative 30,000,000 from 2008. It makes sense and keeps cash flow at an optimal rate.

Real people can only deduct $3K/year for capital gains losses. But corporations are people too, right?


Capital gains and losses are not what NOL is about. NOL is income. Revenues being less than expenses.