McGraw-Hill's Taxation of Business Entities 3rd Edition by Connie Weaver, Brian Spilker, Edmund Outslay, John Robinson, Ronald Worsham, Benjamin Ayers, John Barrick

Exercise 45

Peter, Inc., a Kentucky corporation, owns 100 percent of Suvi, Inc., a Mississippi corporation. Peter and Suvi file a consolidated federal tax return. Peter has income tax nexus in Kentucky and South Carolina; Suvi in Mississippi and South Carolina. Kentucky, Mississippi, and South Carolina are separate-return states. In which states must Pete and Suvi file tax returns Can they file a consolidated return in any states Explain. ( Hint: Use South Carolina Form SC 1120 and the related instructions.)