The operations of 80% or more owned domestic subsidiaries can be included in the parent corporation's consolidated tax return if a proper election is made.

Question

Quizplus · Accepted Answer

A domestic subsidiary that is 80% or more owned by a parent corporation can be included in the parent's consolidated tax return, provided a proper election is made to treat them as a consolidated group. This allows the parent and its subsidiaries to file a single consolidated tax return, combining their incomes, deductions, and credits.

The Operations of 80% or More Owned Domestic Subsidiaries Can