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Subgroup consolidations for insurance returns
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This article applies to:

  • Product: ONESOURCE Income Tax
  • Return type: 1120 Corporation
  • Subject: Consolidations,insurance

1120-L Subgroup subconsolidation

All 1120-L returns need to be combined in a 1120-L subgroup Consolidation. Even if there is only 1 1120-L individual company in the entire consolidation, a subgroup is required for the tax product.
The topmost 1120-L subgroup consolidation is consolidated with a Nonlife subgroup into the Life Nonlife top con. You can have many lower 1120-L subgroups included (there is no limit) in the topmost 1120-L subgroup, but they're not in the e-file. Only the topmost 1120-L subgroup can be in the e-file. All entities in the
What to Consolidate
 list need to be of the 1120-L return type. Don't mix entity types.

Types of 1120-L subgroup subconsolidation structures

The 1120 subgroup can have any of the following structures. If your parent is in this group and is an 1120-L return type, then your Life Non-Life top consolidation must be an 1120-L return type and is not allowed to e-file yet.
If the entities share the same EIN/tax ID number, create a Divisional Consolidation (DivCon). The returns listed under it are set up as divisions. The EIN/tax ID is on the DivCon return, not the division returns.
On the DivCon return:
  • Parent slot:
    Division
  • Elimination:
     Subgroup elimination
  • Subsidiary slot:
     Division
If there are several 1120-L subsidiaries and 1120-L subgroups to be consolidated together, the 1120-L subgroup:
  • Parent slot:
    1120-L Subsidiary or subgroup
  • Elimination:
     1120-L Subgroup elimination
  • Subsidiary slot(s):
     1120-L Subsidiary or subgroup
If there are several 1120-L subsidiaries to be consolidated together, the 1120-L subgroup:
  • Parent slot:
    1120-L Subsidiary
  • Elimination:
     1120-L Subgroup elimination
  • Subsidiary slot(s):
     1120-L Subsidiary
If there is only 1 1120-L subsidiary in the entire consolidation:
  • Parent slot:
    1120-L Subsidiary
  • Elimination:
     1120-L Subgroup elimination
  • Subsidiary slot:
     Blank

Complete a 1120-L topmost subgroup

  1. Create the 1120-L topmost 1120-L subgroup return.
  2. Go to Organizer, then select
    Insurance Consolidations
    , then
    1120-L Subgroup Consolidation Wizard
    , then
    Step 3 - What to Consolidate
    .
  3. Enter the parent, elimination, and subsidiaries according to the previous structures.
  4. Compute
     all subsidiaries. If you make any changes to the lower entities, you need to recompute them and reconsolidate.
  5. Consolidate.

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