A U.S. parent can deduct the current operating loss of a non-U.S. entity that it owns if the non-U.S. entity is operated as a:

Question

Quizplus · Accepted Answer

A U.S. parent can deduct the current operating loss of a non-U.S. entity if it is operated as a branch, as branches are not separate legal entities and their income and losses are directly included in the U.S. parent's tax return. Subsidiaries, being separate legal entities, do not allow for such direct deductions.

A US Parent Can Deduct the Current Operating Loss of a a Non-U.S