In a forward triangular merger, the target firm's tax attributes in the form of any tax loss carry forwards or carrybacks or investment tax credits carry over to the acquirer because the target ceases to exist.

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In a forward triangular merger, the target's tax attributes do not automatically carry over to the acquirer because the target is merged into a subsidiary of the acquirer, and the target ceases to exist.

In a Forward Triangular Merger, the Target Firm's Tax Attributes