1120-US: Allocation method used to assign the various taxable income brackets (FAQ)

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Question

What method of allocation is permitted to assign the various taxable income brackets?

Answer

Members of a controlled group can elect an unequal apportionment plan and divide the taxable income brackets as they want. If an apportionment plan is not adopted (or in effect), members of the controlled group must divide the amount in each taxable income bracket equally among themselves. Please refer to Entering a corporation as a controlled group for additional information regarding how to assign the taxable income, credits, exemptions, and limitation items.

Related topic: 1120-US: Controlled group FAQs

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