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Controlled group and affiliated service group rules

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All of the following statements concerning the controlled group and affiliated service group rules are correct EXCEPT: 

  1. An affiliated services group exists when there is common ownership and one business is service-oriented.
  2. If two business partners each own 50% of each of three companies, then all three will be part of a brother-sister controlled group.
  3. A parent-subsidiary controlled group exists if the parent owns 80% or more of the subsidiary.
  4. The ownership interests of an individual's adult child or spouse are never attributed to that individual.

Reference no: EM132245093

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