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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (48047)	4/7/2002 9:27:24 AM
From: Logain Ablar	Read Replies (1) \| Respond to of 99280

Zeev: I think your mixing GAAP accounting (purchase and pooling) with tax accounting. For tax return purposes (the current portion of the GAAP tax provision (GAAP equals current and deferred) its a purchase of stock (there is whats known as sec 338(h)10 election to obtain some allocaton to hard assets but this is small in the $$ amounts of the actual purchase price and only the company's tax department will know this level of detail) and only when you sell the stock can you realize the loss. Now many companies have generalted net operation losses over the past couple of years (not the goodwill writedowns) and these losses will either be carried back to obtain refunds (remember MU did this) or carried forward to shelter future income. Hey I'd discuss this further but I have to do more returns. See you soon. Tim