How does New Mexico treat S Corporations and Qualified Subchapter S Subsidiaries (QSSSs) that file a New Mexico CIT return?
New Mexico follows federal practice. If QSSSs are reported in the parent’s CIT return, New Mexico accepts a return on the same basis. The return is the “election.” No separate election is necessary. Note: Each corporation included on the parent’s return, having exercised its corporate franchise in New Mexico, is subject to the franchise tax.
Related Questions
- Is there a composite return for nonresidents where S corporations can file and pay the corporate tax without filing an individual return?
- How are Qualified Subchapter S Subsidiaries (QSSS) treated for Mississippi income and franchise taxes purposes?
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