Income Tax Benefit

3 Months Ended

Jun. 30, 2012

Income Tax Benefit [Abstract]

Income Tax Benefit

8. Income Tax Benefit

The income tax benefit for the quarters ended June 30, 2012 and 2011 was determined by computing the current and deferred tax provisions for the interim periods using the GUC Trust’s statutory tax rate of 35%. An annual effective tax rate is not determinable because the GUC Trust’s only significant source of income is gains on distributions of New GM Securities, which are not determinable until realized. The components of the income tax benefit in the statements of changes in net assets in liquidation for the three months ended June 30, 2012 and 2011 are as follows:

(in thousands)	Three Months Ended June 30, 2012		Three Months Ended June 30, 2011
Current	$	—	$	—
Deferred		108,583		—
Total	$	108,583	$	—

Deferred taxes in the accompanying condensed statement of net assets at June 30, 2012 are comprised of the following components:

(in thousands)
Deferred tax assets:
Reserves for expected costs of liquidation	$	21,106
Net operating losses		12,672
Tax basis in excess of fair value of holdings of New GM Securities		15,374
Total deferred tax assets		49,152
Valuation allowance		(49,152	)
Net deferred tax asset	$	—

Valuation allowances against deferred tax assets aggregating $49.2 million and $18.3 million were provided during the quarters ended June 30, 2012 and June 30, 2011, respectively, due to uncertainty as to whether the deferred tax assets are realizable. Realization of the deferred tax assets is solely dependent upon the generation of taxable gains upon the distribution or sale of New GM Securities in the future, which is not determinable prior to occurrence.