Child Corporation joined the Thrust consolidated group in year 1. At the time it joined the group, Child held a $2 million NOL carryforward. On a consolidated basis, the members of Thrust generated significant profits for many years.
Child's operating results during the first few consolidated return years were as follows. The § 382 rules do not apply to the group.
Tax Year Taxable Income
1 ........ ($ 100,000)
2 ........ 1,600,000
3 ........ 1,800,000
How will Child's NOLs affect consolidated taxable income for each of these years? Is any refund available with respect to the NOL that Child brought into the group? Explain.

  • CreatedSeptember 09, 2015
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