Re: Section 382 NOL limitation

Neil Gulati · ‎03-06-2019

Question - Do the Section 382 limitation on NOL deduction of the US Co. applies to the following facts (My thinking is that it probably does not):

US Corporation (US Co.) owned 100% by a Foreign Corp. (Sub 1) which is owned 100% by another Foreign Corp.(Parent Co.) .

Sub 1 transfers its 100% ownership of the US Co. to another Foreign Corp (Sub 2) which is also owned 100% by same Parent Co.

US Co. files its stand alone US Corp. income tax return and will continue to do so.

IntuitKatieB · ‎03-06-2019

Thank you for the question, we are glad to have you in this community! Because this qualifies as tax advice rather than program assistance, let me get you in touch with a few of our All Star professional contributors.

@itonewbie @IRonMaN Would you be able to provide some insight on this?

IRonMaN · ‎03-06-2019

Sorry, the closest I get to foreign corporations is taking a fishing trip to Canada.

Slava Ukraini!

sjrcpa · ‎03-06-2019

I thinkk no, also, because there really hasn't been an ownership change when you look through evrything. But I would research throroughly and document.

The more I know the more I don’t know.

itonewbie · ‎03-06-2019

I'd agree with Susan because of the attribution rule from §318(a)(2)(C).

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Neil Gulati · ‎03-07-2019

Thanks for your response.

Neil Gulati · ‎03-07-2019

Thanks much.

suntaxes · ‎09-12-2020

It's dependent on whether the parent is foreign or domestic. There is no 382 if the parent is also a US company, because the parent files with US Co. If the parent is foreign, yes, there is 382 limitation for US Co tax attributes.