Which of the following entities is eligible to file Federal income tax returns on a consolidated basis?
A) A U.S. C corporation that files on a separate basis for its state income tax returns.
B) The charitable foundation of a U.S. C corporation.
C) The liquidating trust of a U.S. C corporation.
D) A wholly owned French subsidiary of a U.S. C corporation.

Question

Quizplus · Accepted Answer

A U.S. C corporation can file Federal income tax returns on a consolidated basis with its domestic subsidiaries if it owns at least 80% of the subsidiary's stock. The other entities listed (B, C, D) are not eligible for consolidated tax filing because they are either not taxable entities, not corporations, or not domestic entities.

Which of the Following Entities Is Eligible to File Federal