Subsidiary Holds an Allocated Net Operating Loss NOL) When It

question 51

Multiple Choice

Subsidiary holds an allocated net operating loss NOL) when it leaves the Parent consolidated group. As a result:

• A) The group keeps Subsidiary's allocated loss.
• B) Subsidiary takes its allocated NOL and uses it on subsequent separate tax returns.
• C) The loss is suspended for five years in case Subsidiary rejoins the group; then Parent can use it.
• D) The loss is suspended for five years in case Subsidiary rejoins the group. At that time, Subsidiary uses the loss on its separate return.

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