controlled groups revisited

[pmacduff]

Two companies (A & B) with idential ownership:

owner #1 = 25%; owner #2 = 25%; owner #3 = 25%, owner #4 = 8%; owner #5 = 8%; owner #6 = 4% and owner #7 = 4%.

I've had a brain freeze...where the CG rules state "the same 5 or fewer", it doesn't matter if there are more than 5, just that 5 or fewer own 80% or more, correct?

 

 

[Lou S.]

Yes look at the same 5 for common ownership and identical ownership tests.

In your case owners 1 through 5 have 91% common and 91% identical ownership which is the highest amount so you have a CG.

[pmacduff]

Thanks Lou.  I was thinking correctly but then second guessed myself because my memory "ain't what it used to be"!

 

[Bill Presson]

1 minute ago, pmacduff said:

my ___________ "ain't what it used to be"!

 

For most of us, this would be accurate.

WCP