Question

what is srly

Answer 1

Separate Return Limitation Year (S.R.L.Y.) is a year in which a company was either member of any affiliated group in the year of loss or has filed a separate Federal income tax return.

Under the rules of SRLY when a loss making company joins a consolidated group and section 382 is not applicable, losses of new member to the extent it contributes to consolidated taxable income may be used by consolidated group. New momber's disallowed interest carryforward could be deducted to the extent it contributes to section 163(j) after satisfying some basic conditions