Federal Tax Update (06.25.09)

---

Download full update

Raising Equity Capital: Beware the Tax Consequences
Corporations planning to raise equity capital face exposure to Internal Revenue Code Section 382, “Limitation on Net Operating Loss Carryforwards and Certain Built-in Losses Following Ownership Change,” which has the potential to substantially limit a company’s ability to deduct losses or use tax loss and credit carryforwards. Depressed stock and asset values have increased the likelihood that an issuance of equity capital could trigger the application of Section 382.

 

Crowe Horwath LLP is a member of Crowe Horwath International, a Swiss association. Each member firm of Crowe Horwath International is a separate and independent legal entity. Crowe Horwath LLP and its affiliates are not responsible or liable for any acts or omissions of Crowe Horwath International or any other member of Crowe Horwath International and specifically disclaim any and all responsibility or liability for acts or omissions of Crowe Horwath International or any other Crowe Horwath International member. Accountancy services in Kansas and North Carolina are rendered by Crowe Chizek LLP, which is not a member of Crowe Horwath International. This material is for informational purposes only and should not be construed as financial or legal advice. Please seek guidance specific to your organization from qualified advisers in your jurisdiction. Materials published prior to Sept. 1, 2008, were developed by Crowe Chizek and Company LLC. © 2009 Crowe Horwath LLP Privacy Policy Legal