Music, welcome back to our video series on the US tax reform. Today, we want to talk about net operating losses. Charlie – loose hooked Rockland for tack ELISA. We know that the US has been a very interesting and strong market for German companies to invest in for many years, and I am very certain that will continue to be the case in the future. However, when I started investing in the US, I naturally made significant investments, which often led to situations where I incurred tax losses. Can you explain the impact of the new laws on tax losses? Well, first and foremost is the rate impact. We have talked a lot about the rate reduction, and losses were quite valuable to a company, considering they were valued at a 35% tax rate. Now, with the new laws, the tax rate is reduced to 21% plus states. So, there is a significant decrease. It's hard to complain about a decrease, right? But I think companies in 2017 will see a significant decline in their financial statements primarily due to the rate reduction and its impact on their net operating losses. But can I still carry forward my losses? Absolutely! Under the new law, businesses with losses carrying forward can still fully utilize those losses against future taxable income. The old law allowed a company to carry forward losses for 20 years without limitation on their utilization. However, when losses completely offset all income, there used to be an alternative minimum tax that would kick in. Now, under the new law, that tax has been done away with, and losses can be carried forward indefinitely. However, there is a limitation now on how much can be used, which is 80% of taxable income. This effectively puts us back in the same...
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Notices to Individuals With Certain Deferred Foreign Tax Liabilities Sep 28, 2023 — When an individual fails to file Form W-2 as required by Section 6011, the IRS is also notified of his liability.
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