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tanzam75

join:2012-07-19
reply to swintec

Re: Backwards We Go

AT&T might actually be better off if their most-deteriorated lines are taken by the government using eminent domain.

Eminent domain has favorable tax treatment, in that you can reinvest the proceeds in like property without capital gains taxes. Thus, AT&T could spend the money it receives from losing its worst-performing lines on upgrading its better-performing lines to U-verse.

That's not such a bad outcome, considering that AT&T has been unable to find a private buyer for those lines ...

Cobra11M

join:2010-12-23
Mineral Wells, TX
said by tanzam75:

AT&T might actually be better off if their most-deteriorated lines are taken by the government using eminent domain.

Eminent domain has favorable tax treatment, in that you can reinvest the proceeds in like property without capital gains taxes. Thus, AT&T could spend the money it receives from losing its worst-performing lines on upgrading its better-performing lines to U-verse.

That's not such a bad outcome, considering that AT&T has been unable to find a private buyer for those lines ...

interesting you brought that up.., that could be possible.. wouldnt that mean then the government would run it? (I cant see them expanding it..)