Author: George L. White

Publisher:

Published:

Total Pages:

ISBN-13: 9781633590427

...analyzes the problems relating to the limitations on losses imposed by the consolidated return regulations on an affiliated group of corporations filing a consolidated return. Consolidated tax liability is computed in four steps. First, the separate taxable income or loss of each member is determined in accordance with the eliminations and adjustments peculiar to consolidated returns (e.g., intercompany transactions, inventory, etc.). Next, items that were excluded from the computation of separate taxable income are computed on a consolidated basis. Then, consolidated taxable income is determined by adding the results obtained in the first two steps. Finally, the tax is determined on the amount of consolidated income, and reduced by consolidated tax credits.