P and S Corporations form in Year 1, with S as Ps wholly-owned subsidiary. The corporations immediately
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P and S Corporations form in Year 1, with S as P’s wholly-owned subsidiary. The corporations immediately elect to file consolidated tax returns. The group reports the following results:
In what year(s) can the group deduct the Year 2 consolidated NOL? Assume that Year 2 is a post-2017 year.
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Taxable Income Group Member Year 1 Year 2 Year 3 Year 4 $9,000 $20,000 $21,000 $25,000 (7,800) (30,000) (16,000) P S 2,000 Consolidated taxable income (before NOL deduction) $1,200 $(10,000) $ 5,000 $27,000
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4000 in Year 3 and 6000 in Year 4 Because the NOL arose in a pos...View the full answer
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Related Book For
Federal Taxation 2021 Corporations, Partnerships, Estates & Trusts
ISBN: 9780135919460
34th Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse
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