Virginia—No Filing Requirement but Still Get NOL

A Virginia corporation commercially domiciled and operated in a foreign country, and a corporation commercially domiciled out of state, were appropriately excluded from the consolidated return because they did no business in Virginia and lacked sufficient activities to generate income from Virginia sources or to create a positive apportionment factor. However, the parent co did not have to back out a deduction for the full amount of a net operating loss incurred by the out of state corp between the date it was acquired and the date it was liquidated.