Consolidated Net Operating Losses and Consolidated Tax Returns”
Imagine that a client is pursuing the acquisition of Corporation A that has a substantial net operating loss. Corporation B is a member of the controlled group and is currently included in the consolidated tax return that also has a net operating loss.
Analyze the potential advantages and disadvantages of Corporation B’s acquisition of Corporation A and Corporation A’s subsequent inclusion in Corporation B’s consolidated tax return.
Suggest the key tax issues the client should consider in determining the deductibility of the net operating losses. Evaluate the impact of the Tax Cuts and Jobs Act (TCJA) on the net operating losses.
Make sure you discuss all components. 350 to 500 words