Controlled Group for 415 limits

[Young Curmudgeon]

I just want to make sure I'm understanding this correctly.

Brother-sister controlled groups don’t have the separate “controlled group for 415” rules.

Parent-subsidiary does have the additional 415 rules. You just substitute “more than 50%” for “80% or more”.

The proposed regs had this applying to both types, the comments the IRS received prompted them to clarify the issue in the final regs.

I don’t understand why “one guy” who owns 100% of A and 75% of B doesn’t get viewed as a parent of both. It seems odd that if he made A own B he’d have one 415 limit, but he just owns A&B as an individual he gets two 415 limits.

Am I interpreting this correctly?

[QNPG]

I just want to make sure I'm understanding this correctly.

Brother-sister controlled groups don’t have the separate “controlled group for 415” rules.

Parent-subsidiary does have the additional 415 rules. You just substitute “more than 50%” for “80% or more”.

The proposed regs had this applying to both types, the comments the IRS received prompted them to clarify the issue in the final regs.

I don’t understand why “one guy” who owns 100% of A and 75% of B doesn’t get viewed as a parent of both. It seems odd that if he made A own B he’d have one 415 limit, but he just owns A&B as an individual he gets two 415 limits.

Am I interpreting this correctly?

Under IRC §415(h), for purposes of IRC §415 limitations, a parent-subsidiary group exists if the parent company owns more than 50% of the subsidiary company (rather than at least 80%). I think you may have the amounts switched in your sentence above (unless I'm confused!)