Section 382 limitation

In accounting, section 382 limitation means the annual cap on using pre-change NOLs and credits after an ownership change — a more-than-50-percentage-point increase in ownership by 5% shareholders over a rolling three-year testing period. The cap is the loss corporation's equity value immediately before the change times the IRS long-term tax-exempt rate; unused cap carries forward.

Layer: Lexicon
Defined in: Lexicon
Nearby: 4

Authority

This definition follows IRC §382.

Every citation in this system, with the text we read and the date we checked it, is in US GAAP and where these rules come from.

What it is not called

Each of these is a real word for a different thing. Using it here is what makes a product read as though it was built by someone who has not done the work.

NOL expiry
change of control alone

Nearby in the catalog

No component names this concept outright. These are the ones in its part of the system, which is a weaker claim — but a component nothing links to is a component nobody finds.