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Posted

If a person owns 50% of corporation A, 30% of corporation B, and their spouse owns 100% of corporation C - does this constitute a control group through attribution of ownership with corporation c & b?

The two spouses have nothing to do with the other's company - no management control, etc.

Thank you.

  • 2 weeks later...
Guest curmudgeon
Posted

I think I need more infomation to answer that. I will assume that the other 50% of A and 70% of B is not owned by the spouse. If the spouse does not have ownership in A or B other than attribution, you wouldn't have a CG. If the spouse is the other owner of A & B, then you may have a situation. The additional information you may want to consider is: What state are they in? Is it a community property state? If they operate in a community prop. state they are deemed to own the others bus. Do they have children under 21? If so, than even with a separate prop. agreement, in a non community prop. state, the kid gets attribution from both of the parents and you have a CG. I would need more details to offer an accurate assessment.

Posted

The resident expert is here: http://benefitslink.com/modperl/qa.cgi?db=qa_who_is_employer

Might also want to review non-involvement, as mentioned in this thread:

http://benefitslink.com/boards/index.php?showtopic=20451

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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