Discussion:Transfer of cash to foreign corporation

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Revision as of 02:21, 29 August 2009
Smktax (Talk | contribs)
(Your journal ent)
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Sandysea (Talk | contribs)
(What does inv me)
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{{ForumReplyPost|UserID=Smktax|Date=29 August 2009|Text=Your journal entries look good.}} {{ForumReplyPost|UserID=Smktax|Date=29 August 2009|Text=Your journal entries look good.}}
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 +{{ForumReplyPost|UserID=Sandysea|Date=29 August 2009|Text=What does inv mean to you? Inventory or investment?
 +
 +
 +If investment, then yes, you credit cash and debit investments in foreign aspects.
 +
 +The foreign corp, still needs to show that it is NOT APIC....this would retain this as equity and NOT a liability.
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 +The investments are an asset on the books of the US corp; need to show a liability on the foreign corp to offset this
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 +Am I misunderstanding you at all?
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 +
 +}}

Current revision

Discussion Forum Index --> Consumer Questions --> Transfer of cash to foreign corporation

Anirgudkar (talk|edits) said:

28 August 2009
Hi,

A US Parent has a 100% CFC. US Parent transfers cash to CFC to be used in the active conduct of trade or business. A form 926 needs to be filed. My question is how is the transfer recorded on US Parent's books? Is it a investment in subsidiary?

Are the following JE's correct:

US Parent:

Inv. in Subs 

  Cash

Foreign sub:

Cash 

 APIC

Thanks.

Sandysea (talk|edits) said:

28 August 2009
Please give more information. We work for profit and thus, to help you with foreign taxes, need to know the full questions.

SandySea

Anirgudkar (talk|edits) said:

28 August 2009
More facts are:

US C-Corp 100% owns a CFC based in Serbia. The US C-Corp transferred cash to the CFC in 2008. So my question how does this transfer get reocrded on US Parent's books?

What kind of information do you require?

Smktax (talk|edits) said:

29 August 2009
Your journal entries look good.

Sandysea (talk|edits) said:

29 August 2009
What does inv mean to you? Inventory or investment?


If investment, then yes, you credit cash and debit investments in foreign aspects.

The foreign corp, still needs to show that it is NOT APIC....this would retain this as equity and NOT a liability.

The investments are an asset on the books of the US corp; need to show a liability on the foreign corp to offset this

Am I misunderstanding you at all?

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