Replies to post #559065 on Fannie Mae-No Politics (FNMA)

[contrarian bull]

DTA = Deferred Tax Asset. Note the word "asset". So they count towards their net worth. Bonus - if tax rates go UP under the democrats, the value of the DTA's will go UP!!!

A DTA is not a tax credit. It's losses you can count against future gains, not dollar credits to be used to "pay" future taxes... minor difference.

Another option might be to take the amount to refund - divide by the stock price - and give them that many warrants for free. No cash... F&F can sell those shares to raise cash.

What is DTA?
If I understand well Tax credit should be considered as the assets of the balance sheets. It’s not cash items, do not generate cash flow?