2016 CCH Federal TaxationComprehensive Topics

Research Problem. To what extent may a corporation accumulate earnings for the reasonable needs of a related corporation?

To what extent does it matter that the following conditions prevail?

1. A parent-subsidiary relationship exists.
2. A brother-sister controlled group exists.
3. The two corporations are in different businesses.
4. The degree of common ownership or control is less than 80 percent.

(Smith)

Smith, Ephraim, Philip Harmelink, James Hasselback. CCH Federal Taxation: Comprehensive Topics, 127th Edition. CCH Inc., 04/2015. VitalBook file.

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