Nonlife consolidation for insurance returns
A mixed group consolidation that only consists of 1120 and 1120-PC returns is a Nonlife Consolidation. It can't contain another return type.
If you have other subsidiaries in your company structure, you need to combine them in the subgroups. Under IRS rules, the 1120 subgroup and the 1120‑PC subgroup are consolidated together. Returns must be grouped by return type.
note
Only the following Nonlife structures correctly compute, print, and e-file in the tax app. If you're creating a Nonlife subgroup to further consolidate with a Life subgroup into a Life-Nonlife top consolidation, you need to set up the structure correctly.
A Nonlife consolidation can contain a maximum of 3 entities on the Subsidiary Listing within the
What to Consolidate
.Key things to remember about Nonlife Consolidations
- A Nonlife consolidation can contain a maximum of 3 entities on the Subsidiary Listing within theWhat to Consolidate.
- The structures are the same for the Nonlife subgroup and the Nonlife top consolidation.
- There are only two structures for a Nonlife subgroup or Nonlife top consolidation.
Types of nonlife structures
The Nonlife subgroup or Nonlife top consolidation can have the following examples.
If the parent is an 1120:
- Parent slot:1120 Topmost Subgroup
- Elimination slot:1120 Nonlife Elimination
- Subsidiary slot:1120-PC Topmost Subgroup
If the parent is an 1120-PC:
- Parent slot:1120-PC Topmost Subgroup
- Elimination slot:1120-PC Nonlife Elimination
- Subsidiary slot:1120 Topmost Subgroup
Complete the
What to Consolidate Subsidiary
listing with all 1120-L entities.If the Nonlife subgroup (to be consolidated in a Life-Nonlife top consolidation) has only an 1120-PC subgroup return and no 1120 subgroup, then the example would be:
- Parent slot:1120 Topmost Subgroup
- Elimination slot:1120-PC Subgroup Elimination
- Subsidiary slot:Blank
Complete a nonlife return
- Create the Nonlife top consolidation or subgroup return.
- Go to Organizer, then selectInsurance Consolidations, thenNonlife Consolidation Wizard, thenStep 2 - What to Consolidate.
- Enter the parent, elimination, and subsidiaries according to the previous structures.
- Computeall subsidiaries. If you make any changes to the lower entities, you need to recompute them and reconsolidate.
- Consolidate.
After consolidation, you can review the results and verify the company’s taxable income on this screen. It lists each entity, return type, and taxable income. Only parent, subsidiary, and elimination returns transfer; subgroup subconsolidation returns don't transfer.
