Question

a) What are the requirements for corporations to file a consolidated tax return?
b) What if any benefits are there to filing a consolidated ta return?
c) Can a non-US corporation join in the filing of a consolidated tax return?
d) How do you determine if a corporation has goodwill for tax purposes?
e) Assume a corporation records goodwill of $18,000,000 in the current year for an acquisition made on June 30. How much if any of the goodwill is deductible in the current year?
f) Would it make a difference to your answer in the previous question if the acquisition was stock of a corporation rather than assets of a business?

Answer 1

Lubsidiary's Form veetwan. In future tar yoarent company with Youm 1122. The parent corporation the Atiliated gecoup member thats veesponsible for filing the return - must attach a copy of each idiany's Form 1122 to its initial consolidated . In future tane yeaus, Form 1122 is only prired for new affiliated group member corporations that are included on the consolidated wetwin for the first time • Ineligible Corporations, certain couborations and other a business entities are ineligible to be included on a consolidated veetwen. This includes s corporations, e Tare - excenft corporations weganized under section e 501 of the Internal Revenue Code, such as chavities, e inswiance companies, corporate entities formed outside of the United States or in va Ŭ s possession, o vregulated investment tests and veral estate investments truste, or REITS. Non-couporate sentily,e wuch as partnerships and limited liability companiese can never be included on a consolidated corporate e Hetwen