How do the stock ownership requirements for an affiliated group of corporations differ from those for a controlled group? An affiliated group has a consolidated NOL for the current year. What factors could determine whether it would be advantageous or disadvantageous for the group to elect to forgo the carryback of the consolidated NOL?

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Business

Walter Franco

10 January, 02:55

How do the stock ownership requirements for an affiliated group of corporations differ from those for a controlled group? An affiliated group has a consolidated NOL for the current year. What factors could determine whether it would be advantageous or disadvantageous for the group to elect to forgo the carryback of the consolidated NOL?

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Kinsley · Answer 1

An "affiliated group" is a precise group that is entitled to organize a combined profit. An affiliated group is in one or more chains of includable corporation linked over stock possession with a common parental, but only if:

Explanation:

The common parental possesses straight at least 80% of the entire "vote and value" of the stock of at-least one includable corporation; and Stock representing 80% of the "vote and value" of each includable corporation is possessed straight by one or more of the other includable corporation