Question

what are the net operating loss overlap rule

Answer 1

To qualify for the net operating loss overlap rule, generally a corporation is required to become a consolidated group member within a time frame of 6 months of the date of change of an ownership that causes rise to a section 382(a) limitation in regard to that carryover (Sec 382 event). An overlap also for the net operating losses will often include situations wherein the net operating loss arises in the period of maximum six month after the section 382 event however before the SRLY event. Moreover overlap rule will be applicable to the subgroup and not separately to the subgroup members. But the rule will not be applicable unless the subgroup of SRLY will be coextensive according to the section 382 loss subgroup.