Get IRS 8869 2000

A parent S corporation uses Form 8869 to elect to treat one or more of its eligible subsidiaries as a qualified subchapter S subsidiary (QSub). ... Because the liquidation is a deemed liquidation, do not file Form 966, Corporate Dissolution or Liquidation.

Share. Tweet. A Qualified Subchapter S Subsidiary, also known as a QSUB or QSSS, is simply an S corporation that's owned by another S corporation.

A QSub is a domestic corporation that itself would be eligible to make an S corporation election and is 100 percent owned by an S corporation that makes the QSub election for its subsidiary.

QSub elections can be effective any time during the year, and thus a QSub election in the simple example above could be made at any time through December 31, 2000, and qualify for transitional relief. However, a QSub election can only be made when the electing parent corporation is an S corporation.

A parent S corporation uses this form to elect to treat one or more of its eligible subsidiaries as a qualified subchapter S subsidiary (QSub). The QSub election results in a deemed liquidation of the subsidiary into the parent.

No Form 2553, Election by a Small Business Corporation, is required to be filed by the parent. See Rev. Rul. 2008-18 for details. A QSub may not be required to have an EIN for federal tax purposes.

For federal income tax purposes, the QSub is not treated as a separate corporation. ... There is no separate federal income tax return for a QSub. Its operations are reported in the S corporation's federal income tax return, thus providing a de facto consolidated return for the S corporation and its QSub.

LLCs and QSubs Are Not Always Disregarded for Tax Purposes. When establishing an entity in the form of a single member Limited Liability Company (LLC) or a Qualified S Corporation Subsidiary (QSub), the expectation would be that these disregarded entities for federal purposes would not be subject to tax.

Although a QSub generally is treated as a disregarded entity for federal tax purposes, it will be treated separately from its S corporation parent for purposes of the following (Regs. ... The federal tax liabilities of any other entity for which the QSub is liable; and. Refunds or credits of federal tax.

A QSub may not be required to have an EIN for federal tax purposes. If the QSub does not have an EIN, enter N/A on line 8.

The parent S corporation may make the QSub election at any time during the tax year. However, the requested effective date of the QSub election generally cannot be more than 12 months after the date the election is filed, or two months and 15 days before the date the election is filed.

If the LLC is a qualified subchapter S subsidiary, or QSub, of your S corporation, distributing property into the LLC is tax-free since a QSub isn't treated as a separate entity for income tax purposes. Instead, the Internal Revenue Service taxes the LLC as if it liquidated all property into the S corporation.

If the LLC is a qualified subchapter S subsidiary, or QSub, of your S corporation, distributing property into the LLC is tax-free since a QSub isn't treated as a separate entity for income tax purposes. Instead, the Internal Revenue Service taxes the LLC as if it liquidated all property into the S corporation.

A parent S corporation uses this form to elect to treat one or more of its eligible subsidiaries as a qualified subchapter S subsidiary (QSub). The QSub election results in a deemed liquidation of the subsidiary into the parent.