Limitation of Nonlife NOL against life subgroup income
The limitation of Nonlife NOLs against life subgroup income is done automatically in the tax application. The 35 percent limitation is automatically calculated in the top consolidation of the tax return. The computation is the lesser of the available Nonlife consolidated NOL or the consolidated life subgroup taxable income after capital loss offset. This computation is done on the yellow workpaper screen.
Follow these steps to view computation screens:
- Go to .
- On the1120, Page 1tab, go to section. Findline 30 - Taxable income. Select the link in the field to go to the yellow workpaper.
- Select1120, Page 1, line 28 minus line 29c.
- The Life-Nonlife Consolidated Taxable Income workpaper displays. Go to item 7,Consol. OLDorNOL offset (*).
- SelectNonlife against Lifein Nonlife subgroup column 2 to go to theConsolidated subgroup OLDorNOL Utilizedworkpaper.
- Go to item 2,Limitation on subgroup losses. SelectNonlife against Lifein the Nonlife subgroup column.
- TheLimitation on Nonlife NOL Utilization per Reg. 1.1502-47(m)(4)(x)worksheet displays.
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