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P and S Corporations form in Year 1, with S as Ps wholly-owned subsidiary. The corporations immediately elect to file consolidated tax returns. The group
P and S Corporations form in Year 1, with S as Ps wholly-owned subsidiary. The corporations immediately elect to file consolidated tax returns. The group reports the following results:
Taxable Income | ||||
---|---|---|---|---|
Group Member | Year 1 | Year 2 | Year 3 | Year 4 |
P | $9000 | $20000 | $21000 | $25000 |
S | ($7800) | ($30000) | ($16000) | $2000 |
Consolidated taxable income (Before NOL deduction) | $1200 | ($10000) | $5000 | $27000 |
In what year(s) can the group deduct the Year 2 consolidated NOL? Assume that Year 2 is a post-2017 year.
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