Cheryl wrote:

- quote -


I tried to reply to this yesterday but my client failed and
just couldn't send.

Do a google search on "selling tax credits" and you'll see
some examples of how American companies, with IRS blessing,
do it.

ChEAr$,
Harlan Lunsford, EA n LA

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Actually some credits can be sold. The section 42 low
income housing credit can be sold - banks are frequent
credit purchasers. They get a twofold benefit - the obvious
one, the credit, plus frequently the investment will help
them meet their Community Reinvestment Act requirements.
There are a number of state tax credits that can be sold as
well.

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Cheryl wrote:

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Various state governments have been doing this for years.
I.e., allowing companies with unused tax credits to sell,
swap or trade them with other companies.

Just perform a search using any decent internet search
engine on: unused state tax credits

--
Alan
http://taxtopics.net

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cherylfdgm[at]yahoo.com (Cheryl) wrote:

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illegally. Every tax credit has its own qualifications.
Any company or individual that takes a credit not qualified
for is committing fraud.

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I've been told that companies buy and sell tax credits. How
does this work?

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