Which of the Following Is Not Generally a Disadvantage of Filing

question 36

Multiple Choice

Which of the following is not generally a disadvantage of filing Federal corporate income tax returns on a consolidated basis?

• A)Compliance costs usually are higher.
• B)Realized losses from transactions between affiliates are not recognized immediately.
• C)The election generally is binding for future tax years.
• D)Gains from one affiliate can be offset by losses from another.This reduces the tax liabilities of the group as a whole.

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Definitions:

Mortgage Interest

The interest charged on a loan used to purchase a property, which is often tax-deductible up to certain limits for the buyer's primary residence.

Insurance

A financial product that provides protection against financial losses from specific risks, such as accidents, theft, or illness.

Repairs

Expenditures to restore property or equipment to its previous operating condition without materially adding to its value.

Primarily Rental

This refers to income or property that is mainly used for rental purposes, often generating rental income for the owner.