deductibility of impairment and restructuring expenses

[cnd]

1. Are impairment expenses tax deductible?
2. Are cash restructuring charges tax deductible?
3. Are non-cash restructuring charges tax deductible?

 

[maratikus]

Impairments are recognized on the statements immediately but don't impact tax returns until the item is sold

restructuring changes are recognized immediately on the financial statements, cash outflow though happens in future years and only then recognized in tax returns

 

[cnd]

thanks. so does this mean that if it is a noncash restructuring charge, then it is not tax deductible?

 

[FisherSU]

All restructuring charges are reported above the line, thus tax deductible. The important distinction is between the effect of restructuring charges as some affect current CF, some future CF and some dont have a CF effect at all.