New tax rules for corporate losses are off the table

The US Treasury Department has withdrawn proposed rules about how companies handle certain tax gains and losses after a change in ownership. This means corporations will continue to follow existing tax rules for these situations, rather than new ones that were under consideration.

The proposed rules would have changed how companies account for built-in gains and losses after a major ownership shift. This could have affected how much tax they pay or how attractive they are for acquisition. By withdrawing the rules, the government avoids introducing new complexity or potential tax liabilities for these transactions. It keeps the current system in place.