Controlled Group Question

[Guest carsonv]

I have the following situation and just wanted to be sure that I am correct that a Controll Group does not exist:

Company A: Roger ownes 62%, Houser ownes 20%, and Elmore ownes 18%

Company B: Roger ownes 67% and Williams ownes 33%

Company C: Roger ownes 51% and Grove ownes 49%

I do not think a controll group exists here and just wanted to make sure I am correct on the rules.

There is not a parent subsidiary relationship b/c one of the businesses does not own 80% of one or more of the others. Also, I don't think that there is a Brother-Sister relationship b/c the 80% ownership test is not satisfied eventhough the 50% identical ownership test is satisfied. If I am thinking correct, both the 80% AND the 50% must be satisfied for a brother-sister relationship.

Any input would be appreciated....

Carson Vaughan

[Archimage]

Your assessment is correct. Just make sure you don't have any ASG issues.