In short
A controlled group is a group of corporations under common control, either a parent and subsidiaries linked by at least 80% ownership, or brother-sister corporations owned more than 50% by the same five or fewer people.
Key takeaways
- Members share certain tax benefits, such as the accumulated earnings credit.
- Members are combined for tests such as the small business gross receipts test.
- Similar rules apply when testing retirement plans for discrimination.
Where it's tested
REG: C Corporation Taxation — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A corporation owns 30% of the stock of another domestic corporation and receives a $100,000 dividend. Ignoring the taxable income limitation, what is the dividends-received deduction?