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Is it possible to create subtask in another project (link issue) and close the parent project when subtask is closed

I need to create an issue on project 1 and create a subtask for it on another project. I want to link both but also I need to close the parent issue when subtask is closed. Is that possible

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No.  A subtask belongs to its parent, and the parent belongs in a project.  So the subtask cannot be in a separate project.

Part of this is due to the configuration, it would be an absolute nightmare to have subtasks in other projects because you'd run into permissions issues, different fields, workflows and so-on.

The closest you can get to this would be to have a separate issue in the target project and link it back to the "parent".  You could then find/write plugins that would be aware of the links and do the required changes if one end changes.

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