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JJK
JJK
Level 3
February 2, 2021

Related Party Transaction - US Parent vs Foreign Sub

  • February 2, 2021
  • 1 reply
  • 6 views
Hello:
If US Parent sends a quarterly $10,000 to help financing a foreign sub operating (foreign sub is not making money yet), is this considered as Related Party Transaction and needed to report/file any Form?
 
I read the IRS rule but still unclear. Thank you.
    This topic has been closed for replies.

    1 reply

    itonewbie
    itonewbie
    Level 15
    February 4, 2021

    What's the exact nature?  Capital injection, related-party loans at below-market-rate, etc.?

    ---------------------------------------------------------------------------------Still an AllStar
      JJK
      JJKAuthor
      Level 3
      February 9, 2021

      Just for helping sub operation, no stock exchange.   For parent, this will be Due from sub, if sub makes any money in the future. 

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