Nebraska Statutes 77-2734.08. Income tax; group of corporations as taxpayer; adjustments to income
(1) When the corporate taxpayer is a group of corporations that does not file a consolidated federal return, the sum of each corporation‘s federal taxable income shall be used to determine taxable income.
Terms Used In Nebraska Statutes 77-2734.08
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Corporation: means all corporations and all other entities that are taxed as corporations under the Internal Revenue Code. See Nebraska Statutes 77-2734.04
- Domestic: when applied to corporations shall mean all those created by authority of this state. See Nebraska Statutes 49-801
- Federal taxable income: means the corporate taxpayer's federal taxable income as reported to the Internal Revenue Service or as subsequently changed or amended. See Nebraska Statutes 77-2734.04
- Property: means all tangible and intangible property that is subject to tax under subsection (1) of section 77-2703 and all rights, licenses, and franchises that are subject to tax under such subsection. See Nebraska Statutes 77-2701.27
- Sales: means all gross receipts of the taxpayer, except:
(a) Income from discharge of indebtedness. See Nebraska Statutes 77-2734.04
- Taxable income: means federal taxable income as adjusted and, if appropriate, as apportioned. See Nebraska Statutes 77-2734.04
- Taxpayer: means any person subject to a tax imposed by sections 77-2701 to 77-2713. See Nebraska Statutes 77-2701.41
(2) The sum of the federal taxable income of the group of corporations shall be adjusted to eliminate intercompany transactions.
(3) If the group of corporations includes a domestic international sales corporation or other entity accorded similar treatment under the Internal Revenue Code, the income of the group shall include only that portion of the domestic international sales corporation’s income that is considered to be a dividend to the parent.
(a) The sales to the domestic international sales corporation shall be eliminated.
(b) The domestic international sales corporation’s property, payroll, and sales shall be included in the factors to the extent of the ownership of the rest of the group.
(c) There shall be no adjustment to the factors when the deferred income is realized by the parent.