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If Company A assigns unused credits to Company B for $100,000 and both are members of the same combined group, are there any non-California related tax consequences?

April 26, 2017Assigns combined COMPANY Credits group members non-california unused

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If Company A assigns unused credits to Company B for $100,000 and both are members of the same combined group, are there any non-California related tax consequences?

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It is possible there may be federal or other state income tax consequences as a result of the entity using the assigned credit, as well as income from “selling” the credits to a related entity.