Reorg required for QSUB?

Technical topics regarding tax preparation.
#1
Posts:
797
Joined:
30-May-2014 7:38am
Location:
NC
H&W own two S-corps 50/50. Corp 1 was created in 2022 and made money. Corp 2 was created in 2023 and has had no activity as of yet. Both corporations own produce distribution routes.

Corp 2 was created because a second corp was required as part of the arrangement for acquiring a second route. It would be nice if Corp 2 was a subsidiary (QSUB) of Corp 1, but the current ownership structure does not support that.

Can H&W simply transfer the stock of Corp 2 into Corp 1 and then have Corp 1 file the 8869 for the Qsub election or is it more complicated than that?
 

#2
Posts:
2656
Joined:
28-Apr-2021 7:00am
Location:
FL
yes and no
Steve
 


Return to Taxation



Who is online

Users browsing this forum: Google [Bot], Google Adsense [Bot], jhanle1948, JoJoCPA, KoiCPA, Nightsnorkeler, Nilodop, NoCalCPA85, warnickcpa, Wiles and 155 guests