Keep Corporation joined an affiliated group by merger in 2012.The group generated a consolidated 2012 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 2010 return,and the parent can claim a tax refund.

Question

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In a consolidated group, net operating losses (NOLs) are generally carried back or forward at the group level, not by individual members. Keep Corporation cannot carry back its share of the NOL to its separate return; the parent company manages the NOL for the entire group.

Keep Corporation Joined an Affiliated Group by Merger in 2012