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I want to close my corporation (registered in California) and open another corporation in Texas. How do i transfer NOL from the California corporation to the new one using Torbotax business?
I own 80% stock in both corporations.
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June 9, 2020
1:40 PM
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Business & farm
You can't just move NOL's from company to company.
This issue is one that is best handled with competent tax professional(s). I say plural as you will need to involve legal counsel and a tax professional.
There are rules that prevent the shifting of NOLs, however, those apply only when there has been an owner or equity shift of more than 50 percent over a 3 year period. Based on the limited facts, you are currently below that threshold as you indicate you own 80% of both companies.
However, you can only accomplish what you want through an acquisition or a merger; hence the need to involve legal counsel.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
Also keep in mind the date of replies, as tax law changes.
June 9, 2020
5:35 PM
330 Views