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Sunday, February 21, 2021 12:33:36 PM
https://www.investopedia.com/terms/l/losscarryforward.asp
A good read of this article:
Example of Loss Carryforward
Imagine a company lost $5 million one year and earned $6 million the next. The carryover limit of 80% of $6 million is $4.8 million. The full loss from the first year can be carried forward on the balance sheet to the second year as a deferred tax asset.
The loss, limited to 80% of income in the second year, can then be used in the second year as an expense on the income statement. It lowers net income, and therefore the taxable income, for that year to $1.2 million. A $200,000 deferred tax asset ($5 million - $4.8 million) will remain on the balance sheet.
BYOC has around 50 million, meaning the tax burden, well let's just say for all practical intensive purposes, goes pretty low into the single digits, say 2%. Since we have a president who will raise taxes on corporate businesses(28%), this is a great thing to have.
I will leave your imagination on what that means when revenues and profits grow.
My thoughts/opinions are my own, based on research & DD, best to find your own! I invest for myself/ family 1st, then everybody else.. the same as any business!
Please do not buy, sell, hold based on my opinion!
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