In plain terms, GM gets to put the value of the money the Old GM "lost" (or threw away) prior to and during its bankruptcy on a piece of paper and say it wants to reduce taxable income by that much. This, apparently, can be applied over the next twenty years.
According to the ever-enjoyable Wall Street Journal, General Motors may come away from its near-death experience with over $45 Billion in tax breaks on future profits over. Yes, that is Billion with a "B". How exactly did that happen?
Somewhere in the hubbub of GM's catastrophic nosedive into failure, paperwork was put in place to utilize a "tax-loss carry-forward" plan that uses deferred tax assets.
1:17 PM
