Keep Corporation joined an affiliated group by merger in 2009.The group generated a consolidated 2009 NOL,and Keep's share of the loss was $50,000.Lacking an election by the parent to the contrary,Keep can carry the loss back to its separate 2007 return and claim a separate refund.

Question

Quizplus · Accepted Answer

According to the rules of consolidated returns, a subsidiary can carry back its share of the consolidated NOL to its separate return year, subject to the parent's election. Since there is no mention of a contrary election by the parent in this scenario, Keep can carry back its share of the consolidated loss to its separate 2007 return and claim a separate refund. Therefore, the statement is true.

Keep Corporation Joined an Affiliated Group by Merger in 2009