gwballin
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Yeah. Great analogy.
Facebook restructured its employee contract by converting the base salary into signing bonus. It paid $5 billion in taxes in 2012; against a profit of $1 billion, it saw $4 billion in loss in 2012.
The signing bonus is spread over the life of the contract. In the case of a business losses, it's 3 years I think, maybe 2. So fb spread forward $1.33 billion loss in each of 2013, 2014, & 2015, much like the signing bonus is spread over the life of the contract for salary cap purpose.
If a company elects not to carry back the nol to get a refund of taxes paid in prior years, the nol can be carried forward for 20 years before it expires.
However the entire nol would be used in 1 year provided there was enough taxable income to absorb it.