4 ms·
Are acquisitions pre or post tax. I Don't know. If they are pretax - You very well could evade taxes by spending excess money on acquisitions, allowing the sto
by rileymat2 9y ago
Are acquisitions pre or post tax. I Don't know.
If they are pretax - You very well could evade taxes by spending excess money on acquisitions, allowing the stock price to increase based on future earnings. Then use step up capital gains when you die to avoid capital gains when transferring wealth to offspring.
- gibybo 9y agoAcquisitions are a capital asset and do not offset your tax liability. If a corporation earns $100 million and buys another company for $60 million, they still owe taxes on the full $100 million.