(a) In computing combined minimum taxable income, all intercorporate dividends (except dividends from a DISC or a former DISC not exempt from tax under this Subchapter) must be eliminated.

(b) Capital losses should be offset against capital gains, contributions should be deducted and intercorporate profits should be treated in computing combined minimum taxable income as if each corporation in the group had filed its Federal income tax return on a separate basis. However, corporations may offset capital losses against capital gains, deduct contributions and defer intercorporate profits as if the corporations in the group had filed a consolidated Federal income tax return, provided the group of corporations included in the combined report consistently computes combined minimum taxable income by this method. Changes in the method of computing combined minimum taxable income under this subdivision may be made only with the approval of the Commissioner.

(c) As to when a combined report will be permitted or required, see Subpart 6-2 of this Title—Combined Reports.