Corporations X and Y are owned by individuals A, B, C, D and partnership P as follows (in percentages):

             X         Y

A        30%   40%

B        50        ---

C        10      20

D        10      20

P        ---       20

Total  100  100

A owns a 25% interest in the capital and profits of P. The other 75% is owned by F, an individual. Individuals A‑F are unrelated. Are X and Y a Brother- Sister controlled group using the 80% and 50% tests of §1563(f)(5)?

Answer rating: 100% (QA)

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