Learning about Net Operating Loss carrybacks/carryforwards. I’m just wondering, does this have anything to do with why Amazon supposedly paid $0 in income taxes? I see people always talking about Amazon paying $0
Posted May 2, 2020, 6:11 PM UTC
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I don't know, but the fact that your university is still testing you on old principles and refuses to change it I think is dumb.
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Carrybacks are back thanks to covid
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I think it’s dumb too, but I’m glad I understand the concept of carrybacks. Maybe they should teach it but they shouldn’t test on it
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They negotiate tax rebates and credits:
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Lol the 129m us current tax benefit in their 2018 10k isn't a tax "rebate" it's a financial statement amount computed in accordance with GAAP.
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When people say they paid zero income tax, they are referring to the tax footnote in the 10k that shows a small US current tax benefit in 2018. The two primary reason why they do not have us current tax is because 1, the NOL utilization you mentioned, 2 the deductions related to stock compensation windfalls, and 3 the reversal of other deferred tax assets. If you look at Amazon's ETR, it is approx 17% for FY 19 and the primary reason it's that low is becuase of stock comp windfalls. That's really their only rate driver that creates a tax benefit, along with credits. Also worth mentioning, Amazon pays billions of dollars in income tax to state, local, and foreign tax authorities. They also pay billions of dollars in above the line taxes like payroll and other social responsibility taxes.
Ohhh gotcha, thanks for the insight!