So I know that in an asset sale you can write up your assets' tax basis, allowing tax savings in the future. Does this also apply to write-downs? For example, in an asset sale could your assets be written down, causing you to pay more taxes in the future?
Furthermore, in a stock sale, does an Asset-Write-down create a DTA, like a Write-Up creates a DTL?
| +166 | How to stop feeling like shit for not making it in IB? | 63 | 26m | |
| +121 | If Tik Tok is forced to sell, what banks do you think would be involved in the deal? | 59 | 7h | |
| +85 | Updated LA Banking Scene (2024) | 61 | 3h | |
| +40 | Ranking banks that went under | 24 | 4h | |
| +38 | Burnt Out M&A ASO | 20 | 4h | |
| +36 | Relevance of A-Levels for U.K. London recruiting | 25 | 1h | |
| +33 | A strategy for SA applicants late to the game like myself | 17 | 2s | |
| +27 | Series 79 Help / Tips to Pass The First Attempt | 11 | 2d | |
| +27 | Intern Ettiquette | 4 | 1d | |
| +23 | What are hours like at BBs in London? | 47 | 1d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Hi Prospect in IB-M&A, any of these topics helpful:
More suggestions...
I hope those threads give you a bit more insight.
Don't think this is right. The whole idea of an asset purchase is that tax basis doesn't change - no goodwill and therefore no bargain sale. If you think about the accounting, you can't possibly have a gain and still have the BS balance unless you mark the asset above the price you purchased it (which you don't do in an asset sale)
To the OP second question, yeah DTL and DTA both can arise in an equity sale. DTA arising if you have an asset write down, although this will almost never happen
Rerum dolore consequatur sed ea atque est consequatur. Commodi quasi aperiam consectetur optio earum. Autem beatae facilis earum praesentium.
Explicabo sed exercitationem est sit. A atque hic exercitationem qui laborum necessitatibus nemo. Quos enim id sunt totam sequi ex aliquam. Dolores temporibus eos tenetur. Nam ut ratione velit optio. Consequuntur iusto aperiam voluptatem sed.
Nihil unde in minus vel fugit quibusdam unde. Accusantium aut vel quam officiis aspernatur labore debitis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...