USA Deferred tax from share acquisition

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

bklynboy

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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.
 

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