1120-US: Proportionate or first-in-first-out (FIFO) method of allocation (FAQ)

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Is the proportionate or first-in-first-out (FIFO) method of allocation required for all tax benefit items?


No, members of controlled groups can still apportion the regular tax brackets, credits, exemptions, and limitation items in any manner they choose. The proportionate and FIFO methods of allocation are only required for the apportionment of the additional tax.

Related topic: 1120-US: Controlled group FAQs

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