Net losses of a foreign subsidiary that is wholly owned by a U.S.corporation are deductible by the U.S.corporation as of the end of the foreign corporation's taxable year.

Question

Quizplus · Accepted Answer

Net losses of a foreign subsidiary are generally not deductible by the U.S. corporation; they are typically only deductible if the foreign subsidiary is a disregarded entity or if certain elections are made, such as a check-the-box election.

Net Losses of a Foreign Subsidiary That Is Wholly Owned