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Tax Attribute

What is 'Tax Attribute'

A type of loss or tax credit that must be reduced as a result of the exclusion of debt cancellation from a taxpayer's gross income. Tax attributes are adjusted when a taxpayer declares bankruptcy.

Tax attributes include net operating losses and carryovers, general business credit carryovers, alternative minimum tax credit carryovers, capital loss and foreign tax credit carryovers.

Explaining 'Tax Attribute'

Taxpayers who are forgiven debts as a result of bankruptcy do not have to include the forgiven debt as income, but certain tax attributes must be reduced by an amount proportionate to the amount of debt that has been forgiven.

For example, if $5,000 in debt was forgiven, then the taxpayer could elect to have the basis of his/her rental property reduced by $5,000 and defer the tax until the property is sold. If the property is sold for a gain, then $5,000 of that gain will be taxed as ordinary income.


Further Reading


Tax attributes as determinants of shareholder gains in corporate acquisitions
www.sciencedirect.com [PDF]
The paper provides evidence that tax attributes of target firms are significant in explaining the abnormal returns to shareholders of both target and acquiring firms following acquisition announcements. The most prominent tax attribute in tax-free acquisitions is the amount of …

Taxation and corporate financial policyTaxation and corporate financial policy
www.sciencedirect.com [PDF]
The paper provides evidence that tax attributes of target firms are significant in explaining the abnormal returns to shareholders of both target and acquiring firms following acquisition announcements. The most prominent tax attribute in tax-free acquisitions is the amount of …

The effect of financial statement classification of hybrid financial instruments on financial analysts' stock price judgmentsThe effect of financial statement classification of hybrid financial instruments on financial analysts' stock price judgments
www.jstor.org [PDF]
The paper provides evidence that tax attributes of target firms are significant in explaining the abnormal returns to shareholders of both target and acquiring firms following acquisition announcements. The most prominent tax attribute in tax-free acquisitions is the amount of …

Corporate governance, incentives, and tax avoidanceCorporate governance, incentives, and tax avoidance
www.sciencedirect.com [PDF]
The paper provides evidence that tax attributes of target firms are significant in explaining the abnormal returns to shareholders of both target and acquiring firms following acquisition announcements. The most prominent tax attribute in tax-free acquisitions is the amount of …

The incentives for tax planningThe incentives for tax planning
www.sciencedirect.com [PDF]
The paper provides evidence that tax attributes of target firms are significant in explaining the abnormal returns to shareholders of both target and acquiring firms following acquisition announcements. The most prominent tax attribute in tax-free acquisitions is the amount of …

An evaluation of alternative measures of corporate tax ratesAn evaluation of alternative measures of corporate tax rates
www.sciencedirect.com [PDF]
The paper provides evidence that tax attributes of target firms are significant in explaining the abnormal returns to shareholders of both target and acquiring firms following acquisition announcements. The most prominent tax attribute in tax-free acquisitions is the amount of …

Fiscal paradise: Foreign tax havens and American businessFiscal paradise: Foreign tax havens and American business
academic.oup.com [PDF]
The paper provides evidence that tax attributes of target firms are significant in explaining the abnormal returns to shareholders of both target and acquiring firms following acquisition announcements. The most prominent tax attribute in tax-free acquisitions is the amount of …

The impact of personal taxes on corporate dividend policy and capital structure decisionsThe impact of personal taxes on corporate dividend policy and capital structure decisions
www.jstor.org [PDF]
The paper provides evidence that tax attributes of target firms are significant in explaining the abnormal returns to shareholders of both target and acquiring firms following acquisition announcements. The most prominent tax attribute in tax-free acquisitions is the amount of …

The effect of taxes on the structure of corporate acquisitionsThe effect of taxes on the structure of corporate acquisitions
www.jstor.org [PDF]
The paper provides evidence that tax attributes of target firms are significant in explaining the abnormal returns to shareholders of both target and acquiring firms following acquisition announcements. The most prominent tax attribute in tax-free acquisitions is the amount of …

Effect of tax avoidance and tax evasion on personal income tax administration in NigeriaEffect of tax avoidance and tax evasion on personal income tax administration in Nigeria
www.worldscholars.org [PDF]
The paper provides evidence that tax attributes of target firms are significant in explaining the abnormal returns to shareholders of both target and acquiring firms following acquisition announcements. The most prominent tax attribute in tax-free acquisitions is the amount of …



Q&A About Tax Attribute


What kind of carryovers can be found on a tax attribute list?

Net operating losses, general business credit carryovers, alternative minimum tax credit carryovers, capital loss and foreign tax credit carryovers.

What is a tax attribute?

A tax attribute is a type of loss or tax credit that must be reduced as a result of the exclusion of debt cancellation from a taxpayer's gross income.

What does it mean to adjust tax attributes?

Tax attributes are adjusted when a taxpayer declares bankruptcy.

Why do taxpayers have to reduce their basis in property if they receive debt forgiveness?

If 5, in debt was forgiven then the taxpayer could elect to have the basis of hisher rental property reduced by 5, and defer the taxes until the property is sold. If the property is sold for gain then 5, of that gain will be taxed as ordinary income.

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