Limitations on Deduction of Group Losses

# (1)

(1) Oregon has adopted the provisions of IRC Section 1503(f) that apply to corporations filing consolidated returns and limit the use of group losses to offset income of a subsidiary paying dividends on preferred stock.

# (2)

(2) The new limitations apply in tax years ending after November 17, 1989.

# (3)

(3) Only the income or losses of those corporations included in the Oregon consolidated return will be included in the computation of the "group losses" and "separately computed taxable income."

# (4)

(4) Oregon modifications that apply should be made prior to computing "group losses," and "separately computed taxable income."

# (5)

(5) The following examples demonstrate the application of the limitation for Oregon:

[Publications: The publication(s) referred to or incorporated by reference in this rule is available from the Department of Revenue pursuant to ORS 183.360(2) and ORS 183.355(6).]

[ED. NOTE: To view attachments referenced in rule text, click here for PDF copy.]