JJK
Level 3
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.
0 Cheers
itonewbie
Level 15

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

---------------------------------------------------------------------------------
Still an AllStar
JJK
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. 

0 Cheers