26 CFR § 1.1502-23 - Consolidated net section 1231 gain or loss.
(a) In general. Net section 1231 gains and losses of members arising during consolidated return years are not determined separately. Instead, the consolidated net section 1231 gain or loss is determined under this section for the group as a whole.
(b) Example. The following example illustrates the provisions of this section:
P | T | |
---|---|---|
|
||
Ordinary | ||
Capital | (20) | |
|
||
Ordinary | 10 | 20 |
Capital | 70 | 0 |
§ 1231 | (60) | 30 |
(c) Recapture of ordinary loss. [Reserved]
(d) Effective date—(1) In general. This section applies to gains and losses arising in the determination of consolidated net section 1231 gain or loss for taxable years for which the due date (without extensions) of the consolidated return is after June 25, 1999.
(2) Application to prior periods. See § 1.1502-21(h)(3) for rules applicable to groups that applied the rules of this section to consolidated return years ending on or after January 29, 1991, and beginning before January 1, 1997.