USA Deferred tax from share acquisition

[LCody]

What could generate deferred tax liabilities from acquiring all outstanding shares of a company?

 

[bklynboy]

Deferred tax arises due to book/tax differences. My guess is if you purchase some company you pick up their values using GAAP values which are not the same as what you would use for a tax basis. As a result, a deferred tax would arise. Or perhaps, the company purchased has NOL's - these would also give rise to a deferred tax position. Hard to be specific without more data on the situation.