¹TD 9048 (3/14/03); Temp. Regs. Sec. 1.1502-21T, -32T and -35T.

²Rite Aid Corp., 255 F3d 1357 (Fed. Cir. 2001), rehg den.

³Notice 2002-18, 2002-1 CB 644.

⁴The temporary regulations also include a look-through rule that applies the BRR to stock of lower-tier subsidiary members when there is a disposition or deconsolidation of a higher-tier members stock. Situations involving these transactions are beyond the scope of this article.

⁵Temp. Regs. Sec. 1502-35T(d)(4) defines a duplicated loss as the excess of (1) the sum of the aggregate bases of the subsidiary members assets (excluding stock in other subsidiary members of the group), the subsidiary members losses carried to its first tax year after the disposition and the subsidiary members deductions recognized but deferred under another provision, over (2) the sum of the value of stock of the subsidiary member and the subsidiary members liabilities taken into account for tax purposes.

⁶See Temp. Regs. Sec. 1.1502-35T(e), Example 6, for a detailed discussion.

⁷The LSR only applies if there has been a disposition of a members stock and the subsidiary remains a group member immediately after the disposition.