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ARTICLE · 30 JANUARY 2004

Affiliation and Consolidation: Selected Group Membership Issues

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I. STOCK OWNERSHIP REQUIREMENTS FOR AFFILIATION UNDER SECTION 1504(a) A. General: The term "affiliated group" means one or more chains of includible corporations connected through stock ownership with a common parent corporation which is an includible corporation, but only if-- 1. the common parent ("P") owns directly stock meeting the requirements of Section 1504(a)(2) in at least one of the other includible corporations; and

United StatesTax
Steven Teplinsky
Steven Teplinsky

Originally published October, 2003. To read this article in full, please go to the bottom of this page.

I. STOCK OWNERSHIP REQUIREMENTS FOR AFFILIATION UNDER SECTION 1504(a)

A. General: The term "affiliated group" means one or more chains of includible corporations connected through stock ownership with a common parent corporation which is an includible corporation, but only if--

1. the common parent ("P") owns directly stock meeting the requirements of Section 1504(a)(2) in at least one of the other includible corporations; and

2. stock meeting the requirements of Section 1504(a)(2) in each of the includible corporations (except the common parent, P) is owned directly by one or more of the other includible corporations.

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