Thank you for using justanswer. The easiest and best way to accomplish this without any tax consequences, is to have 1 S Corporation become the "parent" S Corporation and treat the other S Corporation as qualified subchapter S subsidiary. In doing this, the subsidiary is ignored as a separate entity for income tax purposes and all of the subsidiary's assets, liabilities, and items of income, deduction, and credit generally are treated as those of the parent. You would make this election by filing Form 8869 (Rev. July 2005)Qualified Subchapter S Subsidiary Election
Please also see the following link for more information:
Instructions for Form 2553 (12/2007)
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