Question

"Losses R US" a C-Corporation joined the "Team Corporation's" consolidated Federal income tax return group, when Losses R Us held a $1 million NOL carryforward. In its first year as a part of the Team Corporation group, Losses R Us generated a $150,000 taxable loss. For that year, Team Corporation is thinking of deducting all of Losses R Us’ NOL in computing consolidated taxable income. Is it possible? Please explain in detail giving reasons. (Assume no 382 limitations apply to this case.)

Answer 1

Solution:

The united net working shortfall remainders and convey backs to the taxable year will comprise of any solidified net working misfortunes of the gathering, in addition to any net working misfortunes continued by individuals from the gathering in isolated return years, which might be persisted or back to the taxable year .

In any case, such combined remainders and convey backs will exclude any united net working shortfall allotted to an organization for a different return year.

Cooper held a $1 million NOL convey forward and it has created a $150000 taxable misfortune. There is no pay produced by Cooper as a piece of the Duck gathering, against which Duck can deduct Cooper convey sent NOL in processing the solidified taxable pay.
Consequently, finding of any piece of Cooper's convey sent NOL isn't conceivable in the given case.

So, the given statement is "False".