Identify which of the following statements is true.
A)An affiliated group member's allocated share of an NOL from a consolidated return year may not be available as a carryback to a separate return year of the common parent corporation.
B)If a corporation ceases to be a member of an affiliated group,the corporation is entitled to carry forward its share of the consolidated NOL even if the NOL could be used in full on the consolidated return for the year of cessation.
C)The SRLY (separate return limitation year)rules are designed to prevent the affiliated group from offsetting its current year taxable income by purchasing corporations having NOL carryovers in order to use their NOLs.
D)All of the above are false.

Question

Quizplus · Accepted Answer

The SRLY rules are indeed designed to prevent the affiliated group from offsetting its current year taxable income by purchasing corporations having NOL carryovers in order to use their NOLs. Option A is false because an affiliated group member's allocated share of an NOL may be available as a carryback to a separate return year of the common parent corporation. Option B is false because a corporation that ceases to be a member of an affiliated group cannot carry forward its share of the consolidated NOL.

Identify Which of the Following Statements Is True