/dev/null Posted February 19, 2009 Share Posted February 19, 2009 http://www.businessinsider.com/obama-stimu...ons-phew-2009-2 Link to comment Share on other sites More sharing options...
GG Posted February 19, 2009 Share Posted February 19, 2009 Never let wrong facts get in a way of a good rant. Charter filed Ch. 11, so normal tax rules do not apply. In any event, even if this wasn't a Ch 11 filing, Allen's tax break would only offset his economic interest. Since his economic interest has been wiped out even before the company filed, his tax break is useless. This is the more instructive part of the story (if you followed the links) Edward Ptaszek, a partner in the law firm of Baker Hostetler, said the law is written in such a way that firms in bankruptcy can also benefit, by electing to defer recognition of debt forgiveness income. Under normal bankruptcy rules, a firm would not have to pay taxes on debt that is wiped clean. But in return, the firm would have certain tax assets like net operating losses reduced. Mr. Ptaszek said that under the new law, the firm might prefer to save its net operating losses and pay taxes on income from forgiven debt, if it could defer those taxes for 5 to 10 years. "If you expected to return to profitability very quickly, you might want to use this deferral rule and hold on to your NOLs," said Mr. Ptaszek. Link to comment Share on other sites More sharing options...
blzrul Posted February 19, 2009 Share Posted February 19, 2009 Never let wrong facts get in a way of a good rant. Charter filed Ch. 11, so normal tax rules do not apply. In any event, even if this wasn't a Ch 11 filing, Allen's tax break would only offset his economic interest. Since his economic interest has been wiped out even before the company filed, his tax break is useless. This is the more instructive part of the story (if you followed the links) You and your facts .... you have a lot of nerve clouding the issues with facts. Link to comment Share on other sites More sharing options...
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