Which of the following statements is true?
A)The definition of an affiliated group is the same for purposes of calculating the U.S.production activities deduction as it is for filing a consolidated return.
B)The consolidated charitable contributions deduction is limited to 10% of adjusted consolidated taxable income,without regard to the consolidated DRD,consolidated NOL carrybacks,consolidated capital loss carrybacks,and consolidated charitable contributions deduction.
C)The definition of an affiliated group for purposes of the U.S.production activities deduction uses a 60% ownership threshold.
D)All of the above are true statements.

Question

Quizplus · Accepted Answer

The statement in option B is true. The consolidated charitable contributions deduction is limited to 10% of adjusted consolidated taxable income, without regard to the consolidated DRD, consolidated NOL carrybacks, consolidated capital loss carrybacks, and consolidated charitable contributions deduction.

Option A is false because the definition of an affiliated group is not the same for purposes of calculating the U.S. production activities deduction as it is for filing a consolidated return. For the U.S. production activities deduction, the group must have at least 50% common ownership, whereas for filing a consolidated return, the group must have at least 80% common ownership.

Option C is also false because the definition of an affiliated group for purposes of the U.S. production activities deduction uses a 50% ownership threshold, not 60%.

Which of the Following Statements Is True