Decision Trees: A Frame Work for Analyzing State Income Tax Net Operating Loss Utilization

Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...

Many companies facing the expiration of net operating losses can benefit from tax planning that systematically analyzes alternative courses of action and the uncertainties accompanying these alternatives. In this article, Michael Salama of the Walt Disney Co. suggests the use of decision trees as a method for explicitly analyzing possible future events and decisions, making the point that the techniques and constructs involved in this type of decision modeling can be easily applied to many tax scenarios.