We recently sent you a letter announcing a solution we built for a major airline. It let the airline take advantage of Section 382, affecting their ability to use NOLs against taxable income in the future. The company wanted to track recognized gains (RBIG) and losses (RBIL) effectively during a 5-year period, giving them the ability to receive the maximum benefit from pre-ownership losses. I believe we can partner to provide this same service to a broad range of clients. Below I detail our ability to simplify both your and your client's workdays during mergers and acquisitions. To learn even more,
please visit our website. Summary: Regardless of the system your clients are using to calculate their current GAAP and tax books, not one on the market will do these calculations for them today. Outside of our BIG solution, it is otherwise a manual process.
What We Do: - Import client data into our Fixed Assets Manager product with a regular Federal Tax book and a NUBIG (Net Unrealized Built in Gain) Book, updated to reflect the new change of ownership date and the new Fair Market Value (FMV) of their assets.
- Calculate and run all reports to determine the BIG/BIL (Built-in Gain/Loss), calculate the differences between the two books (RBIG/RBIL).
- Run a five-year projection report for running out the calculations.
- Obtain actual disposals from the client for the following five years.
Value to Client:- Maximizes NOLs, offsetting as much income as possible or they deem appropriate, creating enormous tax savings.
- Eliminates manual steps and errors. This is a significantly challenging process to do by hand.
Provides projection capability, supporting both provision and planning.
Eliminates extra work for a tax team.
Simplifies system changeover. With our BIG solution, the acquired company's data will have been cleaned up and mapped correctly to facilitate merging into the acquiring company's main financial system in the future.
BIG Section 382 Solution provides many service opportunities for both tax and turnaround consulting firms, such as:
Handling tax planning opportunities related to ownership changes and restructuring.
Dealing with the systems and data changes with respect to ownership changes.
Performing valuation assessment for all assets.
Providing analysis once the projection reports are received.
Handling state tax planning.
Advising on provision implications-FIN 48, etc.
We would welcome the opportunity to speak with you further regarding the ways we could partner to better serve clients in this area. For more information, contact me directly at 941-379-7106.
Regards,
Traci Wheeler
Managing Director
Red Moon Solutions
Traci.wheeler@redmoonsolutions.com
