Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Tuesday, January 2, 2018

Goldman Sachs Sees $5 Billion Earnings Hit Ahead of New Tax Law

image from https://s3.amazonaws.com/feather-client-files-aviary-prod-us-east-1/2018-01-02/53f0f68f-7ea1-4c56-bfa4-23a2f028ef54.pngGoldman Sachs is anticipating a $5 billion hit to its fourth-quarter earnings due to the new tax law. Though this represents a one-time, sizeable blow to the company, the overall reduction in the corporate tax rate will be longer lasting. At least two-thirds of the total charge stems from upcoming payments due on overseas assets. Another portion is a result of revaluing assets that are no longer needed to act as a tax shield under the new rates. In a recent filing, Goldman warned that the $5 billion estimate could vary in response to changes in the new law’s components or if the government released fresh guidance on the law’s application.

See Emily Flitter, Goldman Sachs Sees $5 Billion Earnings Hit Ahead of New Tax Law, The New York Times, December 29, 2017.

https://lawprofessors.typepad.com/trusts_estates_prof/2018/01/goldman-sachs-sees-5-billion-earnings-hit-ahead-of-new-tax-law.html

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