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Transfer of Funds from Subsidiary to Parent Company

Overview: Wholly Owned Subsidiary / Operating LLC wishes to move/transfer money to the Parent / Holding Company, which is an S Corp with 3 Shareholders.  Each company has its owns Books. The transfer of funds is to pay Salaries / Distributions to Shareholders.  The 2 Companies however file 1 consolidated tax return (1120S & K-1 to Shareholders), want to avoid QuickBooks showing the income twice.  This is not a loan. 

 

What is the correct way to tag & report in each company's Quickbooks? 

 

Thank you for any help. 

Solved
Best answer 05-11-2018

Best Answers
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Content Leader

Transfer of Funds from Subsidiary to Parent Company

Thanks for reaching out to the Community, Bookkeeper2002.

I have some great insight to provide you on this situation. Inter-company transfers are a bit tricky, and largely depend on the structure of the businesses involved. If the company is complex enough to require a second QuickBooks, there may be a predetermined way to record these transfers. For a general idea on how you can accomplish this, check out the QBO guide on inter-company transfers here.

As the article notes, please be sure to consult your accountant or tax professional to ensure you record it in the correct accounts based on your situation. Let me know if there's anything else I can do for you, and have a great day.

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Highlighted
Content Leader

Transfer of Funds from Subsidiary to Parent Company

Thanks for reaching out to the Community, Bookkeeper2002.

I have some great insight to provide you on this situation. Inter-company transfers are a bit tricky, and largely depend on the structure of the businesses involved. If the company is complex enough to require a second QuickBooks, there may be a predetermined way to record these transfers. For a general idea on how you can accomplish this, check out the QBO guide on inter-company transfers here.

As the article notes, please be sure to consult your accountant or tax professional to ensure you record it in the correct accounts based on your situation. Let me know if there's anything else I can do for you, and have a great day.

View solution in original post

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