Level 11

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.*

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