Keep Corporation joined an affiliated group by merger in 2011. The group generated a consolidated 2011 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 2009 return, and the parent can claim a tax refund.

Question

Quizplus · Accepted Answer

In a consolidated group, net operating losses (NOLs) are generally carried back or forward at the group level, not at the individual member level. Keep Corporation cannot carry back its share of the loss to its separate return.

Keep Corporation Joined an Affiliated Group by Merger in 2011