Question: Because a purchaser can use a targets NOL carry forwards to offset the ordinary and capital gain and recapture tax on the sale of the

Because a purchaser can use a target’s NOL carry forwards to offset the ordinary and capital gain and recapture tax on the sale of the target’s assets, it has been argued that this reduces the cost of achieving a stepped-up basis in assets and makes it advantageous for the purchaser to acquire the target. Do you agree with this argument?

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