Taxes: Related Corporations

Question 1

Taxes:
Related Corporations
Affiliated Groups

Answer 1

Affiliated Groups
Own:
- 80% voting power and
- 80% value
- every day of the year

Question 2

Taxes:
Related Corporations
Affiliated Groups
Elect to File

Answer 2

Elect to File

• consolidated return
• not foreign corporations, S corps, or insurance companies
• must be unanimous and is irrevocable
• must conform to parent’s tax year
• intercompany dividends are eliminated

Question 3

Taxes:
Related Corporations
Controlled Groups

Answer 3

Controlled Groups
- parent/subsidiary, brother-sister groups, and certain insurance companies.
- get one $250k ACE credit limited to TI in first 2 brackets
- get only one section 179 deduction
Parent/Subsidiary