Together,Kurt and Esmeralda own 60% of three corporations: RAZ,DVA,and TRE.The three corporations would be considered as what kind of controlled group for tax purposes?
A) Parent-subsidiary.
B) Brother-sister.
C) Combined.
D) The three corporations would not be considered to be a controlled group for tax purposes.

Question

Quizplus · Accepted Answer

Since Kurt and Esmeralda collectively own less than 80% of the three corporations, they would not be considered a parent-subsidiary group. Also, since there are no common owners among the three corporations, they would not be considered a combined group. Therefore, the three corporations would be considered a brother-sister group for tax purposes.

Together,Kurt and Esmeralda Own 60% of Three Corporations: RAZ,DVA,and TRE