Qualified Subchapter Subsidiaries (Q subs)

Price: $224 eLearning


Sign up today for an entire year of unlimited access to relevant, timely professional learning courses, including webinars, eLearning courses and OnDemand offerings, and keep your professional credits up to date. All for just $399.

Learn more about the subscription!



This course is designed to facilitate your understanding of the use of qualified subchapter S subsidiaries. This course will acquaint you with the eligibility criteria for Qsubs, provide you with an understanding of the election procedures required to create a Qsub, and address the tax consequences of making a valid Qsub election. In addition, this course covers the basic rules related to terminations of Qsub status. You will get insights on different types of scenarios, such as situations where a Qsub's separate corporate status is respected for tax purposes.

After completing this course you will be able to:

• Identify the basic requirements for Qsub election;
• Recognize the effective date options for Qsub elections;
• Identify the relief available for untimely elections;
• Determine the tax effect on the parent and subsidiary after making a valid Qsub election;
• Analyze the specific timing issues that may arise with respect to Qsub elections and deemed liquidations;
• Determine the timing of deemed liquidations in regards to the acquisition of a subsidiary subsequent to a Qsub election;
• Navigate the arguments for two reporting alternatives regarding LIFO recapture when a Qsub is acquired from a consolidated group;
• Determine the effect of a termination of Qsub status and application of the five-year rule;
• Apply the separate entity rule and determine when the separate corporate status of a Qsub is respected for tax purposes; and
• Identify situations in which a separate Qsub EIN is needed.