Carryover of NOL: Section 382 Limitations. Loss Corporation\'s common stock is o
ID: 2461227 • Letter: C
Question
Carryover of NOL: Section 382 Limitations. Loss Corporation's common stock is owned as follows:
R - 45 Shares
S - 45 Shares
T - 10 Shares
On December 15, 2014 E purchased the stock owned by S and T, He purchased the stock because loss have very large NOL carryover.
a. Will the NOL carryover be limited by section 382?
b. Same facts as above except loss is mergd into profit corporation. R,S and T each receive 1,200 shares of profit out of the total of 8,000 shars issues and outstanding. Can profit carry over loss's NOL without limitation under section 382?
Explanation / Answer
ANSWER a
YES, IT IS WITHIN THE LIMITATION OF OF SECTION 382, AS NOW E BECOMES OWNER BY ACQUIRING MORE THAN 51% SHARES.
ANSWER b
NO, PROFIT CORP. CAN NOT CARRY OVER LOSS CORP WITHOUT LIMITTAION UNDER SECTON 382.