Question

6. In computing consolidated taxable income, which items are removed from the taxable income of the group members and determined on a group basis.

Any help would be greatly appreciated. Thanks in advance!

Answer 1

In computing consolidated taxable income, capital gains and losses are removed from the taxable incomes of the group members and determined on a group basis. The starting point in computing consolidated taxable income is the sum of the separate Federal taxable income amounts of the affiliated group members.