Insurance Returns: Nonlife Consolidation

A mixed group consolidation that consists of 1120 and 1120-PC returns ONLY is a Nonlife Consolidation. It cannot contain any other return type. If you have other subsidiaries in your company structure, they must be combined in the subgroups. The IRS rules designate that an 1120 subgroup return and an 1120-PC subgroup return consolidate together. Return types must be grouped together.

Only the following Nonlife Structures correctly compute, print, and create an e-file in the tax application. If you are creating a Nonlife subgroup to be further consolidated with a Life subgroup into a Life Nonlife top consolidation, you must set up the structure correctly.

Nonlife Subgroup or Nonlife Top Consolidation

The Nonlife consolidation can ONLY contain THREE entities on the Subsidiary Listing (see below) of the What to Consolidate listing. The structures are the same for the Nonlife subgroup and the Nonlife top consolidation. There are only two structures for a Nonlife subgroup or Nonlife top consolidation.

Types of Nonlife Structures

The Nonlife consolidation can ONLY contain THREE entities. The structures are the same for the Nonlife subgroup and the Nonlife top consolidation. The Nonlife can have the following examples:

If the parent is an 1120, the example would be:

Parent Slot	1120 Topmost Subgroup
Elimination Slot	1120 Nonlife Elimination
Subsidiary Slot	1120-PC Topmost Subgroup

If the parent is an 1120-PC, then the example would be:

Parent Slot	1120-PC Topmost Subgroup
Elimination Slot	1120-PC Nonlife Elimination
Subsidiary Slot	1120 Topmost Subgroup

Complete the What to Consolidate Subsidiary listing with all 1120-L entities.

If the Nonlife subgroup (to be consolidated in a LNL top consolidation) has only an 1120-PC subgroup return and no 1120 subgroup, then the example would be:

Parent Slot	1120 Topmost Subgroup
Elimination Slot	1120 -PC Subgroup Elimination
Subsidiary Slot	BLANK

Steps to Complete a Nonlife Return

Create the Nonlife top consolidation or subgroup return.
Go to Organizer > Insurance Consolidations > Nonlife Consolidation Wizard > Step 2 - What to Consolidate.
Enter the applicable parent, elimination, and subsidiaries according to the above structures.
Compute all subsidiaries if necessary. If you make any changes to the lower entities, you must recompute and reconsolidate.
Consolidate.

Consolidation Review

After consolidation, you can review the results and verify the company’s taxable income on this screen. It lists each entity, return type, and taxable income. Only parent, subsidiary, and elimination returns transfer; subgroup subconsolidation returns do not transfer.

1120/oit_ins_consol_3.htm/TY2021

Last Modified: 03/20/2020

Last System Build: 01/31/2023