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Acres Commercial Realty Faces Potential Tax Challenges with $121.9 Million Capital Loss Deadline

Acres Commercial Realty Faces Potential Tax Challenges with $121.9 Million Capital Loss Deadline

Acres Commercial Realty Corp. (ACR) has disclosed a new risk, in the Taxation & Government Incentives category.

Acres Commercial Realty Corp. faces a risk related to its net capital loss carryforwards (CLCF), amounting to $121.9 million, which expire on December 31, 2025. The company may not be able to generate sufficient taxable income to fully utilize this CLCF, potentially resulting in higher distribution requirements or tax liabilities post-2025. If the CLCF remains unutilized, Acres Commercial Realty Corp. might not reap the full benefits of this tax attribute, affecting its financial strategies and shareholder distributions. This scenario underscores a significant financial risk that could impact the company’s profitability and distribution policies.

Overall, Wall Street has a Moderate Buy consensus rating on ACR stock based on 1 Buy.

To learn more about Acres Commercial Realty Corp.’s risk factors, click here.

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