TAX 9869 Lecture 64: Constructive ownership under Sec
Document Summary
You can have fp or fc that attributes ownership to a us individ or indivi attributes ownership to the corporation. If owned 100% then its automatically going to be a cfc bc it has a ussh (us pship) In that case no attribution applies bc already owned 100% by us pship. Constructive ownership could be where two people are in same family (husband + wife) Example: you have a fc that"s owned 40% by us corp and 49% by fc + h 5% + w 6%. Us corp is a ussh (owns 10% or more) Wife (w) only owns 6% and h owns only 5% But attribution rules would say wife owns what hubby does and hubby what wife so thru attribution you have 10% owner. But if they get divorced wife will take husbands 5% and now she will be a 10% or more owner (11% total)
