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Form 600 - Instructions To File Consolidated Returns For Taxable Years Beginning On Or After January 1, 2010 Page 2

(b) Each corporation will begin on Line 1 of Schedule 1 with its separate company federal taxable

income or loss. It should make the appropriate additions to or subtractions from taxable income

on Lines 2 and 4. In computing the separate company federal taxable income, capital losses of

one entity cannot offset capital gains of another entity. Furthermore, any computations which

involve limitations, such as charitable contributions, must be treated on a separate company

basis.

(c)

Each corporation will complete Schedule 6 and Schedule 7 to determine the amount of sepa-

rate company Georgia taxable income or loss. Effective for tax years beginning on or after

January 1, 2008, Georgia has a 100% sales factor.

(d) If the corporation has a Georgia separate return limitation year loss, or “GSRLY”, that loss will

be reflected on Line 8 of Schedule 7.

(e) The separate company income or loss must then be reflected on Line 7 of Schedule 1. This

would be the amount from Line 9 of Schedule 7.

(f) On Line 8 of Schedule 1, enter an amount of zero in the box where the income tax amount is

usually entered. It can also be left blank. Enter the Parent’s (designated member’s) FEIN num-

ber on the first page of Form 600.

(g) Corporations that file a consolidated Georgia income tax return are required to report and pay

the net worth tax on a separate company basis. Accordingly, each corporation must complete

Schedule 2 on the separate company Form 600. For tax years 2010 and later, the parent (desig-

nated member) now reports its net worth on the consolidated Group Form 600. Please do not

complete Schedules 2, 3 and 8 on the parent’s (designated member’s) separate return.

(h) Credits must be calculated on a separate company basis. Georgia credit forms must be attached

to each separate company Form 600, and Schedule 9 of the separate company Form 600 must

be completed if the corporation has tax credits. However, Line 6 of Schedule 9 and Line 3 of

Schedule 3 should not be filled in.

Additionally, a schedule must be attached indicating the amount of the credit allowed for each

separate company after considering limitations based on a percentage of state income tax liabil-

ity.

For credit limitation purposes, net operating loss carryovers must be accounted for on a sepa-

rate company basis. For example: A consolidated group consists of two corporations, Corpora-

tion A and Corporation B. In 2010, Corporation A has a separate company apportioned taxable

income of $5,000. Corporation B has a separate company apportioned taxable loss of $6,000.

The consolidated group’s taxable loss is $1,000. The consolidated group elects to carryforward

the loss to 2011.

Form 600 - Instructions To File Consolidated Returns For Taxable Years Beginning On Or After January 1, 2010 Page 2