Three brothers each own 20% of the stock in three corporations. Because no single brother owns more than 50% of a corporation, the tax law would not treat the corporations as a controlled group.
Collectively, the brothers will own more than 50% of the stock of each corporation.

Question

Quizplus · Accepted Answer

Since each brother owns only 20% of the stock in each corporation, collectively they will only own 60% of each corporation. Therefore, they do not own more than 50% of each corporation and the tax law would not treat them as a controlled group.

Three Brothers Each Own 20% of the Stock in Three