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Sec. 1.1502-23A Consolidated net section 1231 gain or loss generally applicable for consolidated return years beginning before January 1, 1997.

(a) The consolidated section 1231 net gain or loss for the taxable year shall be determined by taking into account the aggregate of the gains and losses to which section 1231 applies of the members of the group for the consolidated return year. Section 1231 gains and losses on intercompany transactions shall be reflected as provided in section 1.1502-13. Section 1231 losses that are "built-in deductions" shall be subject to the limitations of sections 1.1502-21A(c) and 1.1502-22A(c), as provided in section 1.1502-15A(a) (or sections (1.1502-21T(c) in effect prior to June 25, 1999, as contained in 26 CFR part 1 revised April 11, 1999 and 1.1502-22T(c) in effect prior to June 25, 1999, as contained in 26 CFR part 1 revised April 1, 1999, as provided in 1.1502-15T(a) in effect prior to June 25, 1999, as contained in 26 CFR part 1 revised April 1, 1999) or (1.1502-21(c) and 1.1502-22(c), as provided in 1.1502-15(a), as applicable)).

(b) Effective date. This section applies to any consolidated return years to which section 1.1502-21(h) or 1.1502-21T(g) in effect prior to June 25, 1999, as contained in 26 CFR part 1 revised April 1, 1999, as applicable does not apply. See section 1.1502-21(h) or 1.1502-21T(g) in effect prior to June 25, 1999, as contained in 26 CFR part 1 revised April 1, 1999, as applicable for effective dates of that section.

[Adopted by T.D. 6894, 31 FR 11794, Sept. 8, 1966,. Revised by T.D. 7246, 38 FR 763, Jan. 4, 1973. Redesignated from section 1.1502-23 and amended by T.D. 8677, 61 FR 33321-33335, June 27, 1996; amended by T.D. 8823, 64 FR 36091-36116, July 2, 1999.]

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