Replies to post #40122 on Vystar Corp (VYST)

[pepeoil]

Hey bruh, the irs is looking. The IRS frowns upon such activity. Section 382 of the Internal Revenue Code states that if a "change in ownership" occurs the NOL will subject to annual limitations. I won't discuss all of the details of the annual limitations as that would get complicated, but the short story is the limitations would significantly reduce the NOL value. A change in ownership occurs if one or more "5% shareholders" increase their ownership in the company by more than 50 percentage points over a three-year testing period. For instance, if a 10% shareholder increased his position in the Company to 70% (a 60 percentage point increase), the NOL would be subject to annual limitations.

[pepeoil]

wweeeeeeeeeeeeeee, VYST only asset is a NOL. WEEEEEEEEEEEEEEEEEEEE...………….oh yea, that is not an asset

[penguin007]

Very Interesting, and Very Positive Information!
Thanks for sharing stervc!

[Churak]

An Accumulated Deficit is used as a Tax Shelter for tax write-offs.

100% incorrect. Accumulated Deficit is accumulated losses for accounting purposes since inception. NOLs are losses available for tax purposes. Accounting losses are not the same thing as tax losses. There should be a note in the last K or Q of the losses available for tax purposes to be carried forward...if they file.

[pepeoil]

Wrong, in their filing bruh

The utilization of our tax losses could be substantially limited if we experience an ownership change as defined in the Internal Revenue Code.

Because of net operating losses we have experienced for federal income tax purposes at December 31, 2017, we had federal net operating loss (“NOL”) carry-forwards of approximately $18.6 million ($17.8 million for 2016) pretax available to offset future taxable income. Our ability to utilize NOL carry-forwards to reduce future taxable income may be limited under Section 382 of the Internal Revenue Code if certain ownership changes in our Company occur during a rolling three-year period. These ownership changes include purchases of common stock under share repurchase programs, the offering of stock by us, the purchase or sale of our stock by 5% shareholders, as defined in the Treasury regulations, or the issuance or exercise of rights to acquire our stock. If such ownership changes by 5% shareholders result in aggregate increases that exceed 50 percentage points during the three-year period, then Section 382 imposes an annual limitation on the amount of our taxable income that may be offset by our NOL carry-forwards or tax credit carry-forwards at the time of ownership change. The limitation may affect the amount of our deferred income tax asset and, depending on the limitation, a significant portion of our NOL carry-forwards or tax credit carry-forwards could expire before we are able to use them. In such an event, our business, financial condition, results of operations or cash flows could be adversely affected.