KPMG report - CERT rules and “avoided cost” method 

February 24:  When a corporate taxpayer analyzes how a net operating loss is carried back, the corporate equity reduction transaction (CERT) rules need to be part of the discussion.

Application of the CERT rules involves the “avoided cost” method. Interpreting how the avoided cost method applies to CERT transactions can be confusing because the terminology used for the avoided cost method sounds unfamiliar.


A KPMG report aims to help taxpayers understand how the avoided cost method applies in the CERT context so nothing is lost in translation.


Read a February 2014 report [PDF 219 KB] prepared by KPMG LLP: What’s News in Tax: Excuse Me, Do You Speak Avoided Cost Method? I’m Trying to Apply the CERT Rules and I’m Lost




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