Keep Corporation joined an affiliated group by merger in 2010. The group generated a 2016 consolidated NOL, and Keep's share of the loss was $50,000. Keep's share of the loss is included in the group's NOL carryforward to 2017.

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When a corporation joins an affiliated group by merger, the NOL carryforwards of the group can be used to offset income of the acquired corporation in future tax years. Keep's share of the 2016 NOL is included in the group's NOL carryforward and can be used by the group to offset future income.

Keep Corporation Joined an Affiliated Group by Merger in 2010