Which NYC Tax return do I file for an S Corp w/QSubs

Technical topics regarding tax preparation.
#1
A2Zcpa  
Posts:
13
Joined:
30-Sep-2021 6:10pm
Location:
MD
Looking for some help re: NYC General Corporation Taxes

I have a client (S Corp) who acquired a company (also S Corp) through a Type F reorganization, resulting in the following entity structure: NewCo (S Corp) is the parent corporation that owns both Purchasing Corp (QSub 1) and Target Corp (QSub 2). Essentially 100% of operations is now run through QSub 1; QSub 2 still exists as a legal entity but all operating expenses, including payroll, are processed via QSub 1. QSub 2 had a small amount of revenues in 2020 that were generated post-merger in its own name. As a result of the merger my client now has sales, payroll, and leased office space in NYC.

What I cannot figure out is the correct GCT Tax return to file with New York City. Is it the 3A (Combined General Corporation Tax Return) - in addition to the two QSubs there are disregarded entities and partnership interests, but there aren't really any eliminating/consolidating journal entries. Or, are the activities reported on 3L (General Corporation Tax Return)? Based on the instructions it seems like the 3L would be filed in the name of QSub1, and Parent, which is just a holding company, would not have a filing requirement. Or is the answer something else altogether?

In addition, if anyone knows how to make Lacerte prepare these forms correctly I'd appreciate your tips. Thank you all in advance for your insight.
 

Return to Taxation



Who is online

Users browsing this forum: CaptCook, CoastalCPA, Eduardo, HowardS, itssewtaxing, JoJoCPA, JR1, lckent, MAPCPA60, msmith7305, rbynaker, sjrcpa, SumwunLost, TaxDude, Terry Oraha, Treetopclimes and 197 guests