Taxpayer is a US domestic corporation with Cayman Co as holding company. Cayman owns 100% US domestic. 2019 tax return done.
In 2020, Cayman set up an offshore 100% subsidiary in Europe. In 2020, Europe sub generates loss and will probably make profit in 2021 and going forward. US corp will be in the red for years.
Both Europe and US domestic are 100% owned by Cayman. For 2020, there is no other related transaction except Cayman put money/Capital in two subs.
What should I pay attention to the US domestic Corp tax return for 2020? Should I include report for the Europe sub?
Thank you!