Intermet Corporation & Subsidiaries - Page 8

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          Section 1.1502-21A(f), Income Tax Regs., provides that the CNOL             
          shall be determined by taking into account the separate taxable             
          income, "as determined under � 1.1502-12", of each member of the            
          group and certain enumerated consolidated items.4  Finally,                 
          section 1.1502-12, Income Tax Regs., provides that the separate             
          taxable income of a member, "including a case in which deductions           
          exceed gross income", is determined, with certain modifications,            
          as if the member were not a member of the group.                            




          4    Sec. 1.1502-21A(f), Income Tax Regs., reads as follows:                
                    (f)  Consolidated net operating loss.  The                        
               consolidated net operating loss shall be determined by                 
               taking into account the following:                                     
                         (1)  The separate taxable income (as                         
                    determined under � 1.1502-12) of each member of                   
                    the group, computed without regard to any                         
                    deduction under section 242;                                      
                         (2)  Any consolidated capital gain net income                
                    (net capital gain for taxable years beginning                     
                    before January 1, 1977);                                          
                         (3)  Any consolidated section 1231 net loss;                 
                         (4)  Any consolidated charitable                             
                    contributions deduction;                                          
                         (5)  Any consolidated dividends received                     
                    deduction (determined under � 1.1502-26 without                   
                    regard to paragraph (a)(2) of that section); and                  
                         (6)  Any consolidated section 247 deduction                  
                    (determined under � 1.1502-27 without regard to                   
                    paragraph (a)(1)(ii) of that section).                            




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