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pitboss22

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pitboss22

Re: Flowing post# 841

Friday, 01/13/2012 9:00:43 PM

Friday, January 13, 2012 9:00:43 PM

Post# of 3562
I guess they're in for a shock! I'm surprised they didn't check with a tax accountant or at least read the applicable tax codes efore wasting 5 million shares.

The Continuity of Business requirements of section 382 of the IRC spell it out. The continuity test requires that after a change of ownership, either the historic business must continue, or a significant portion of the historic assets must be used in the continuing business. Otherwise, NONE of the pre-change losses can be used.

The "Mineral King" is evidently a "Tier-1" goober.

It's explained fairly well here:

http://www.nysscpa.org/cpajournal/2007/307/essentials/p52.htm
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