Tax Loss Carryforward: Increase or Decrease Valuation Allowance?

[archived_user]

Tax Loss Carryforward: Increase or Decrease Valuation Allowance?
I have it down as Decrease VA –> Increase DTA –> Higher NI, but I think I might have it backwards ….
Thank you

 

[archived_user]

If a company has recorded NOL and it is “more likely than not” that it can use this NOL and if it has VA recorded because managers assumed that it was not “more likely that not” they could use NOL, then, yes, decrease VA, increase DTA and increase NI.

 

[archived_user]

Thank you