Saturday, March 18, 2017

NOLs (Net Operating Losses) Carryforwards

On March 14th, 2016 on the Rachel Maddow show on MSNBC it was said that President Trump was able to write off $103 MM of the reported $153 MM that he made in 2005. The "leaked" two page 1040 Form at DCreports lacks the accompanying schedules (such as Schedule D) that would itemize what those losses represented. Trump's supposedly had realized capital losses on investments in real estate, casinos in Atlantic City and the folded Trump Airlines. NY Times: Trump Wrote Off $100 Million in Losses in 2005.

How many businesses use these NOLs ? The answer is, quite a few. The value of NOLs can be a valuable asset for a business.

In fact, there are some top companies with NOLs and tax credits to market capitalization of 10%, 15%, and 20%. including large caps General Motors, Delta Air Lines, AIG, United Continental, Calpine, CIT Group, Charter Communications, CMS Energy, MGM Resorts.

Clarification: there's no connection between Trump and AIG. AIG and other companies are mentioned here because of their use of NOLs.





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