Section 41 Federal Income Tax Deduction

• Library: Tax Law 2009

The federal income tax deduction for corporations filing separate Missouri and consolidated federal returns is determined by the formula set out in 12 C.S.R. § 10-2.090. The members of the affiliated group may not compute their federal income tax deductions as if each corporation had filed separately. See Mid-Am. Television Co. v. State Tax Comm’n of Mo., 652 S.W.2d 674 (Mo. banc 1983). Instead, each corporation is apportioned a pro rata share of the actual federal consolidated federal taxable income. This...