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How is a Family Limited Partnership (FLP) considered for controlled group rules? Specifically, when multiple companies are involved and individuals own portions of some of the companies (perhaps constituting a brother-sister controlled group or combined via ASG rules) and then the same individuals own other companies but only through an FLP. 

Posted

An FLP is an LP, which is a P. Generally, there is attribution (i.e., the partners are treated as if they owned the stuff owned by the partnership) to partners owning a 5% or greater interest. 1563(e)(2). This is only a general outline of the applicable legal provisions responding to your general question, JustMe.

Luke Bailey

Senior Counsel

Clark Hill PLC

214-651-4572 (O) | LBailey@clarkhill.com

2600 Dallas Parkway Suite 600

Frisco, TX 75034

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