For two or more corporations to file a consolidated tax return, the parent must own what percentage of the voting power of all classes of stock and what percentage of the fair value of all the outstanding stock of the corporation?

Question

Quizplus · Accepted Answer

To file a consolidated tax return, the parent company must own at least 80% of the voting power and fair value of all outstanding stock of the corporation(s) involved. This means that the parent company must have control over the subsidiaries, allowing them to be treated as one entity for tax purposes.

For Two or More Corporations to File a Consolidated Tax