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CONSOLIDATED S CORPS

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Level 8

I know on the page 1 of the 1120 you can click the box for Consolidated return, and proceed. (have to mail still, although Lacerte lets you efile).  So, what if you wanted to change the corporations to S corps (which it appears you  can do)....where do you note that on a S Corp return that it is a consolidated return?  I can't seem to locate that. 

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Level 10

Not at all my area of expertise so someone smarter than me may jump in and correct me here . . .

My understanding is that you make a QSUB election for the subsidiary S Corps and doing so effectively turns those S Corps into disregarded entities for tax purposes.  You would consolidate the books outside of the tax return process (i.e. Excel) and just report the totals on the "consolidated" S Corp return.  But since it's just one entity for tax purposes, there's no need for a consolidated check box.

I'm not sure how you'd get to S Corp w/QSUBs from C Corps owning C Corps so I have no idea where those land mines are buried.  Tread carefully. 🙂

Rick

 

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Level 8

exactly... i do 1 consolidated... and the owners were inquiring about this.  Google/IRS wasn't much help..... so this group of brains ( along with the more-than-occasional 'brainless'), was my next logical step.  Was not sure about the subsidiary's form 2553 either, for sure.  

thanks for your info. 

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