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Related Party Transaction - US Parent vs Foreign Sub

Level 3
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.
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2 Comments 2
Level 15

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

Still an AllStar
Level 3

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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