Hovering Deficit

14:00 Mar 6, 2019
This question was closed without grading. Reason: Other

English to Spanish translations [PRO]
Bus/Financial - Law: Taxation & Customs
English term or phrase: Hovering Deficit
Need help with this term:

If the foreign surviving corporation had a deficit in E&P prior to a transaction described in section 381, such deficit is recharacterized as a hovering deficit after such nonrecognition transaction. See section 381(c)(2)(B) and Regulations sections 1.367(b)-7(d)(2)(i) (post-1986 undistributed earnings) and 1.367(b)-7(e)(1) (pre-1987 E&P not previously taxed). An amount equal to the deficit reported in column (a), (b), or (c) of line 5a is included as a positive amount in line 5b of column (a), (b), or (c), respectively. An amount equal to the total hovering deficits reported in line 5b of columns (a), (b), and (c) is included as a negative number in column (d) of line 5b.

Thanks in advance.
Luximar Arenas Petty
United States
Local time: 14:35


Summary of answers provided
1déficit flotante
María Taibo


Discussion entries: 1





  

Answers


2 hrs   confidence: Answerer confidence 1/5Answerer confidence 1/5
hovering deficit
déficit flotante


Explanation:
“[...] a deficit in earnings and profits of either the transferee or transferor corporation can only be used to offset earnings and profits accumulated after the date of transfer. Section 381(c)(2)(B). This is commonly known as the `hovering deficit rule´. The hovering deficit rule is a legislative mechanism designed to deter the trafficking in favorable tax attributes that the IRS and courts had repeatedly encountered.”

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Note added at 7 days (2019-03-14 08:32:16 GMT)
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En realidad quería decir "estacionario", es decir, que no varía, puesto que se trata de evitar el fraude fiscal con variaciones a favor, pero tampoco estoy segura. Disculpa el lapsus, Luximar.


    https://www.irs.gov/irb/2006-37_IRB
María Taibo
Spain
Local time: 20:35
Native speaker of: Native in SpanishSpanish
Notes to answerer
Asker: Gracias, pero no estoy convencida que flotante sea la traducción correcta para este término.

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