Which of the following statements is false regarding consolidated tax returns?
A)An affiliated group can file a consolidated tax return only if it elects to do so.
B)To file a consolidated tax return,one corporation must own at least 50% of the stock of another corporation.
C)For a group of corporations filing a consolidated tax return,an advantage is that losses of one group member may offset gains of another group member.
D)For a group of corporations filing a consolidated tax return,losses from certain intercompany transactions are deferred until realized through a transaction outside of the group.

Question

Quizplus · Accepted Answer

To file a consolidated tax return, one corporation must own at least 80% of the stock of another corporation, not 50%.

Which of the Following Statements Is False Regarding Consolidated Tax