Recommend the alternatives that you believe would be best

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A client is pursuing the acquisition of Corporation A that has a substantial net operating loss. Corporation B is a member of the controlled group and is currently included in the consolidated tax return that also has a net operating loss. Analyze the potential advantages and disadvantages of Corporation B's acquisition of Corporation A and Corporation A's subsequent inclusion in Corporation B's consolidated tax return. Suggest the key tax issues the client should consider in determining the deductibility of the net operating losses.

From the e-Activity, create a tax-planning strategy for a client geared toward complying with the final regulations issued by the IRS under Code Section 267 (f). (Note: Code Section 267 (f) discusses the time taken into account for deferred losses on the sale or exchange of property between members of a controlled group.) Recommend the alternatives that you believe would be best suited for the client to use in order to both take advantage of losses between members and remain in compliance with related regulations. Justify your response.

Reference no: EM13393659

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