Internal Revenue Code · 26 U.S.C.
§ 1502. Regulations
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 1502
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Enacted
- October 4, 1976 by Pub. L. 94–455
- Last amended
- October 22, 2004 by Pub. L. 108–357
- Amendments
- 1 dated changes in the source credit
- Length
- 145 words · about 1 min to read
- Cross-references
- cites 0; cited by 2 Code sections and 15 other regulations
- Regulations
- 56 issued under this section
The Secretary shall prescribe such regulations as he may deem necessary in order that the tax liability of any affiliated group of corporations making a consolidated return and of each corporation in the group, both during and after the period of affiliation, may be returned, determined, computed, assessed, collected, and adjusted, in such manner as clearly to reflect the income-tax liability and the various factors necessary for the determination of such liability, and in order to prevent avoidance of such tax liability. In carrying out the preceding sentence, the Secretary may prescribe rules that are different from the provisions of chapter 1 that would apply if such corporations filed separate returns.
(Aug. 16, 1954, ch. 736, 68A Stat. 367; Pub. L. 94–455, title XIX, § 1906(b) (13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 108–357, title VIII, § 844(a), Oct. 22, 2004, 118 Stat. 1600.)
Regulations under this section
Treasury regulations (26 CFR) issued under § 1502
- § 1.1502-0 Effective/applicability dates.
- § 1.1502-1 Definitions.
- § 1.1502-2 Computation of tax liability.
- § 1.1502-3 Consolidated tax credits.
- § 1.1502-4 Consolidated foreign tax credit.
- § 1.1502-5 Estimated tax.
- § 1.1502-6 Liability for tax.
- § 1.1502-9 Consolidated overall foreign losses, separate limitation losses, and overall domestic losses.
- § 1.1502-11 Consolidated taxable income.
- § 1.1502-12 Separate taxable income.
- § 1.1502-13 Intercompany transactions.
- § 1.1502-14Z Application of opportunity zone rules to members of a consolidated group.
- § 1.1502-15 SRLY limitation on built-in losses.
- § 1.1502-16 Mine exploration expenditures.
- § 1.1502-17 Methods of accounting.
- § 1.1502-19 Excess loss accounts.
- § 1.1502-21 Net operating losses.
- § 1.1502-22 Consolidated capital gain and loss.
- § 1.1502-23 Consolidated net section 1231 gain or loss.
- § 1.1502-24 Consolidated charitable contributions deduction.
- § 1.1502-26 Consolidated dividends received deduction.
- § 1.1502-28 Consolidated section 108.
- § 1.1502-30 Stock basis after certain triangular reorganizations.
- § 1.1502-31 Stock basis after a group structure change.
- § 1.1502-32 Investment adjustments.
- § 1.1502-33 Earnings and profits.
- § 1.1502-34 Special aggregate stock ownership rules.
- § 1.1502-35 Transfers of subsidiary stock and deconsolidations of subsidiaries.
- § 1.1502-36 Unified loss rule.
- § 1.1502-43 Consolidated accumulated earnings tax.
- § 1.1502-44 Percentage depletion for independent producers and royalty owners.
- § 1.1502-45 Limitation on losses to amount at risk.
- § 1.1502-47 Consolidated returns by life-nonlife groups.
- § 1.1502-50 Consolidated section 250.
- § 1.1502-51 Consolidated section 951A.
- § 1.1502-55 Computation of alternative minimum tax of consolidated groups.
- § 1.1502-59A Application of section 59A to consolidated groups.
- § 1.1502-68 Additional first year depreciation deduction for property acquired and placed in service after September 27, 2017.
- § 1.1502-75 Filing of consolidated returns.
- § 1.1502-76 Taxable year of members of group.
- § 1.1502-77 Agent for the group.
- § 1.1502-78 Tentative carryback adjustments.
- § 1.1502-79 Separate return years.
- § 1.1502-80 Applicability of other provisions of law.
- § 1.1502-90 Table of contents.
- § 1.1502-91 Application of section 382 with respect to a consolidated group.
- § 1.1502-92 Ownership change of a loss group or a loss subgroup.
- § 1.1502-93 Consolidated section 382 limitation (or subgroup section 382 limitation).
- § 1.1502-94 Coordination with section 382 and the regulations thereunder when a corporation becomes a member of a consolidated group.
- § 1.1502-95 Rules on ceasing to be a member of a consolidated group (or loss subgroup).
- § 1.1502-96 Miscellaneous rules.
- § 1.1502-98 Coordination with sections 383 and 163(j).
- § 1.1502-99 Effective/applicability dates.
- § 1.1502-100 Corporations exempt from tax.
- § 1.1502-77A Common parent agent for subsidiaries applicable for consolidated return years beginning before June 28, 2002.
- § 1.1502-77B Agent for the group applicable for consolidated return years beginning on or after June 28, 2002, and before April 1, 2015.
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
Cited by 2 Code sections
Cited in 15 regulations not issued under it
- § 1.167(a)-11 Depreciation based on class lives and asset depreciation ranges for property placed in service after December 31, 1970.
- § 1.199A-12 Expanded affiliated groups.
- § 1.367(b)-2 Definitions and special rules.
- § 1.446-4 Hedging transactions.
- § 1.451-3 Timing of income inclusion for taxpayers with an applicable financial statement using an accrual method of accounting.
- § 1.469-1 General rules.
- § 1.542-4 Corporations filing consolidated returns.
- § 1.597-4 Bridge Banks and Agency Control.
- § 1.904-4 Separate application of section 904 with respect to certain categories of income.
- § 1.1051-1 Basis of property acquired during affiliation.
- § 1.1221-2 Hedging transactions.
- § 1.1297-1 Definition of passive foreign investment company.
- § 1.1503-1 Computation and payment of tax.
- § 1.1503(d)-5 Attribution of items and basis adjustments.
- § 301.6111-1T Questions and answers relating to tax shelter registration.
Amendment history
From the source credit and the official notes, newest first.
- Amended by Pub. L. 108–357
- Enacted by Pub. L. 94–455
Where it sits in the Code
Nearby sections
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
2004—Pub. L. 108–357 inserted at end “In carrying out the preceding sentence, the Secretary may prescribe rules that are different from the provisions of chapter 1 that would apply if such corporations filed separate returns.”
1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary”.
Statutory Notes and Related Subsidiaries
Effective Date of 2004 Amendment
Pub. L. 108–357, title VIII, § 844(c), Oct. 22, 2004, 118 Stat. 1600, provided that: “This section [amending this section], and the amendment made by this section, shall apply to taxable years beginning before, on, or after the date of the enactment of this Act [Oct. 22, 2004].”
Dual Resident Companies
Pub. L. 100–647, title VI, § 6126, Nov. 10, 1988, 102 Stat. 3713, provided that:
“(a) General Rule.— In the case of a transaction which—“(1) involves the transfer after the date of the enactment of this Act [Nov. 10, 1988] by a domestic corporation, with respect to which there is a qualified excess loss account, of its assets and liabilities to a foreign corporation in exchange for all of the stock of such foreign corporation, followed by the complete liquidation of the domestic corporation into the common parent, and“(2) qualifies, pursuant to Revenue Ruling 87–27, as a reorganization which is described in section 368(a)(1)(F) of the 1986 Code,then, solely for purposes of applying Treasury Regulation section 1.1502–19 to such qualified excess loss account, such foreign corporation shall be treated as a domestic corporation in determining whether such foreign corporation is a member of the affiliated group of the common parent.“(b) Treatment of Income of New Foreign Corporation.—“(1) In general.— In any case to which subsection (a) applies, for purposes of the 1986 Code—“(A) the source and character of any item of income of the foreign corporation referred to in subsection (a) shall be determined as if such foreign corporation were a domestic corporation,“(B) the net amount of any such income shall be treated as subpart F income (without regard to section 952(c) of the 1986 Code), and“(C) the amount in the qualified excess loss account referred to in subsection (a) shall—“(i) be reduced by the net amount of any such income, and“(ii) be increased by the amount of any such income distributed directly or indirectly to the common parent described in subsection (a).“(2) Limitation.— Paragraph (1) shall apply to any item of income only to the extent that the net amount of such income does not exceed the amount in the qualified excess loss account after being reduced under paragraph (1)(C) for prior income.“(3) Basis adjustments not applicable.— To the extent paragraph (1) applies to any item of income, there shall be no increase in basis under section 961(a) of such Code on account of such income (and there shall be no reduction in basis under section 961(b) of such Code on account of an exclusion attributable to the inclusion of such income).“(4) Recognition of gain.— For purposes of paragraph (1), if the foreign corporation referred to in subsection (a) transfers any property acquired by such foreign corporation in the transaction referred to in subsection (a) (or transfers any other property the basis of which is determined in whole or in part by reference to the basis of property so acquired) and (but for this paragraph) there is not full recognition of gain on such transfer, the excess (if any) of—“(A) the fair market value of the property transferred, over“(B) its adjusted basis,shall be treated as gain from the sale or exchange of such property and shall be recognized notwithstanding any other provision of law. Proper adjustment shall be made to the basis of any such property for gain recognized under the preceding sentence.“(c) Definitions.— For purposes of this section—“(1) Common parent.— The term ‘common parent’ means the common parent of the affiliated group which included the domestic corporation referred to in subsection (a)(1).“(2) Qualified excess loss account.— The term ‘qualified excess loss account’ means any excess loss account (within the meaning of the consolidated return regulations) to the extent such account is attributable—“(A) to taxable years beginning before January 1, 1988, and“(B) to periods during which the domestic corporation was subject to an income tax of a foreign country on its income on a residence basis or without regard to whether such income is from sources in or outside of such foreign country.The amount of such account shall be determined as of immediately after the transaction referred to in subsection (a) and without, except as provided in subsection (b), diminution for any future adjustment.“(3) Net amount.— The net amount of any item of income is the amount of such income reduced by allocable deductions as determined under the rules of section 954(b)(5) of the 1986 Code.“(4) Second same country corporation may be treated as domestic corporation in certain cases.— If—“(A) another foreign corporation acquires from the common parent stock of the foreign corporation referred to in subsection (a) after the transaction referred to in subsection (a),“(B) both of such foreign corporations are subject to the income tax of the same foreign country on a residence basis, and“(C) such common parent complies with such reporting requirements as the Secretary of the Treasury or his delegate may prescribe for purposes of this paragraph,such other foreign corporation shall be treated as a domestic corporation in determining whether the foreign corporation referred to in subsection (a) is a member of the affiliated group referred to in subsection (a) (and the rules of subsection (b) shall apply (i) to any gain of such other foreign corporation on any disposition of such stock, and (ii) to any other income of such other foreign corporation except to the extent it establishes to the satisfaction of the Secretary of the Treasury or his delegate that such income is not attributable to property acquired from the foreign corporation referred to in subsection (a)).”
Special Rule for Disposition of Stock of Subsidiary
Pub. L. 99–514, title VI, § 647, Oct. 22, 1986, 100 Stat. 2294, provided that: “If for a taxable year of an affiliated group filing a consolidated return ending on or before December 31, 1987, there is a disposition of stock of a subsidiary (within the meaning of Treasury Regulation section 1.1502–19), the amount required to be included in income with respect to such disposition under Treasury Regulation section 1.1502–19(a) shall, notwithstanding such section, be included in income ratably over the 15-year period beginning with the taxable year in which the disposition occurs. The preceding sentence shall apply only if such subsidiary was incorporated on December 24, 1969, and is a participant in a mineral joint venture with a corporation organized under the laws of the foreign country in which the joint venture mineral project is located.”