Related Party Transaction - US Parent vs Foreign Sub

JJK · ‎02-02-2021

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.

itonewbie · ‎02-04-2021

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

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Still an AllStar

JJK · ‎02-09-2021

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

Related Party Transaction - US Parent vs Foreign Sub

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