Control group question

[Guest jhilliard]

We have a client that is a group of companies in the medical field. One of the companies involved is 100% owned by the trust. When completing control group testing if one of the companies is owned by a trust:

1) How is this company treated? Is it part of the control group?

2) Is the trustee the owner of the trust?

As you can tell I am not real strong in this area, so please be gentle.

Thanks

[Blinky the 3-eyed Fish]

1. You don't provide the ownership percentages of the other companies only that one of the companies is 100% owned by a trust. That information is needed as well as the beneficiaries of the trust and their share of the trust.

2. The beneficiaries are attributed ownership of the trust. There are some more specific rules though depending on the type of trust.