controlled group husband and wife

[Santo Gold]

Husband and Wife each own separate businesses that are not related to each other. No employees are shared. Both are sole props. They are about as separate as they can be.

Based on this alone, I would say that a controlled group does not exist. Would you agree? I am not certain if there are any children under age 21. If so, then technically a controlled group would exist. Is that correct?

Here's the twist. Both businesses are in Texas, a community property state. Given that, does it change the answer?

Thanks

[K2retire]

To avoid being deemed to own the other's businesses, spouses must meet 4 criteria: there must legal restrictions that prevent it (e.g. you must be a lawyer to own an law firm professional corporation, etc.), they have no minor children, neither has signing authority or any other management function on the other's accounts, and they do not live in a community property state. Based on your facts, they are a controlled group.