1120 divisional subconsolidation filing as single company
Can a divisional subconsolidation be used to file a single company return?
A divisional subconsolidation can be used to file a single company return if the federal and all state returns within the locator are filed single. This process rolls up divisional data so that the information prints and calculates as though it was a corporate single entity return. It will calculate both federal and state tax and it will calculate NOL usage and other limitations.
To set up the divisional subconsolidation correctly, follow these rules:
- The structure of the return should consist of 1 subconsolidation entity, 1 eliminations entity, and 2 or more division entities. There shouldn't be any parent, subsidiary, or single entities included.
- The subconsolidation won't be used in a top consolidation filing.
- In the subconsolidation, go to the tab and select option 4: Consolidate divisions into a single company return for federal and state purposes.
- Consolidate the return. After consolidation, go back to tab and make sure there is an X in option 3 - Consolidate divisions.
Preparing the states:
- Set the state toAddin the division locators.
- Input state organizer data in the division locators.
- Input Allocation and Apportionment data in the division locators.
- Mark the box for each state and Allocation and Apportionment in the divisional subconsolidation's tab.
- After consolidation, for each state filed, go to and change the entity type toSingle Company.
These rules apply to regular states. For rules on preparing Exception States, refer to 1120 Divisional Subconsolidation Exception States.
