Controlled Group Question - Family Attribution

I have a potential client that sent over the ownership percentages below, so we're trying to determine if there is a controlled group.  Since they are adult children, is it accurate that Company 3 is the only one that wouldn't be part of a controlled group (since the son owns 50% or less of the company).  Company 4's ownership would be attributed to the parents, and therefore part of the controlled group, since the ownership gets attributed to the parents since he owns over 50% of the company.

Thanks!!

Only 1, 2, and 5. Adult son owns 100% of Company 4 and it is not attributable to parents.

8 minutes ago, Calavera said:

Only 1, 2, and 5. Adult son owns 100% of Company 4 and it is not attributable to parents.

I thought if they owned more than 50% that it was still attributable.  Is that not accurate?

1 hour ago, metsfan026 said:

I thought if they owned more than 50% that it was still attributable.  Is that not accurate?

You only receive attribution if you own over 50%. You don't attribute to an adult (child or parent) if you own over 50%.

5 minutes ago, Bill Presson said:

You only receive attribution if you own over 50%. You don't attribute to an adult (child or parent) if you own over 50%.

Thanks!  So I'm correct that it's 1, 2, 4 & 5 that would have to be attributed.  Company 3 could be excluded?  I just wanted to make 100% sure

Calavera already gave you the answer: 1, 2 & 5. 3 & 4 are not part of the controlled group.

Sorry everyone, they actually sent incorrect information initially.  Based on this there are no controlled group issues, not even a brother/sister controlled group since the parents only own more than 80% of one company.  I just wanted to confirm that I was thinking this through correctly.

Thanks everyone and I apologize for all of the questions!

1 and 2 are a controlled group. Dad is attributed mom's 50% and, since dad owns more than 50% of 2, he is attributed the 30% from sister, his adult child. This is under Section 1563 attribution.

No attribution in 3 because neither owns more than 50%. And no attribution in 4 due to siblings.

I know this is basic but I'm just tired and burnt out...

Dad owns 80% of company, two unrelated individuals own 10% each.

Adult son works full-time for company - is Dad's 80% attributed to son?

For what purpose?

For 1563 which is used in controlled groups no attribution in this case. Dad has more than 50% so he would be deemed to own Son's % if son had any.

For 318 or 267(c) which are used for HCE, KEY, 401(a(9), prohibited transactions, ASG and few other items there is attribution.

Question was for key/top heavy determination.  Son is HCE by his comp - so that isn't a question for those purposes.