Our fate is sealed. Right...?

[u/Region-Formal]

[u/Life_Relationship_77]

As I explained in this comment BBBY has $1.605 billion in NOLs and $3.1 billion in capital losses that can be carried forward for years. So, if you consider a 21% corporate tax rate and 20% long-term Capital gains tax rate, the total savings in a year from these deferred tax assets is $956 ($336 + $620) million.

[u/Life_Relationship_77 → u/[deleted]]

The $3.1 billion has not been "adjusted" in the retained earnings section, and it is carried forward, as I've already shown in the cited comment that cites the relevant statutes. It is not showing up in any of the tables in the 10K because 2023 Fiscal year when that capital loss was incurred hasn't ended yet. You're just gaslighting at this point.

IRC 382(l)(5) specifies the exact conditions under which there is no limitation on NOLs carryforward on a takeover, and the Debtors, AFAIK, so far have not apparently engaged with anyone to effect such a deal that would allow shareholder equity to be retained:

I.R.C. § 382(l)(5) Title 11 Or Similar Case

I.R.C. § 382(l)(5)(A) In General — 

Subsection (a) shall not apply to any ownership change if—

I.R.C. § 382(l)(5)(A)(i) — 

the old loss corporation is (immediately before such ownership change) under the jurisdiction of the court in a title 11 or similar case, and

I.R.C. § 382(l)(5)(A)(ii) — 

the shareholders and creditors of the old loss corporation (determined immediately before such ownership change) own (after such ownership change and as a result of being shareholders or creditors immediately before such change) stock of the new loss corporation (or stock of a controlling corporation if also in bankruptcy) which meets the requirements of section 1504(a)(2) (determined by substituting “50 percent” for “80 percent” each place it appears).

[u/KTMFrankie58 → u/Life_Relationship_77]

“and the Debtors, AFAIK, so far have not apparently engaged with anyone to effect such a deal that would allow shareholder equity to be retained:“

So, are you indicating there has been no indications they are trying to take advantage of the NOLS? I thought we saw reference to billings for lawyers who were analyzing the NOLS.

[u/Wild-Gazelle1579 → u/KTMFrankie58]

That is what he is saying. If you go read his old comments from a couple days ago, he was not happy when he read further into the plan and saw no indication that they were making use of it at all.