USA Extraordinary Items & Tax

[Louise Pomfret]

Hi

we are presently subject to a takeover and certain cash pool cash assets are likely lost to the company. If I need to write off these cash losses as an Extraordinary Item - can I use these to reduce my tax this year?
Thanks

 

[kirby]

It is unclear in your post WHY the cash pool assets will be lost due to takeover. I do not need to know but you will need to be crystal clear on why, document the loss, and yes - claim as a loss for taxes. It will be worth your while to get a tax person to tell you how to document this NOW while the records are still available to you.