Jack owns 100 shares of X corporation stock. His wife Jill also owns 100 shares X corporation stock. Jack is 60% owner of Z corporation (a C corporation). Z corporation is owns 120 shares under section 318 because of attribution.
a) True
b) False

Under Section 318 of the US tax code, attribution rules apply to attribute shares owned by related parties to a common owner. Since Jack and Jill are spouses, they are considered related parties.

Jack owns 100 shares directly and is deemed to own an additional 120 shares through his 60% ownership of Z Corporation, making his total attributed shares 220 (100 + 120).

Similarly, Jill's ownership is also attributed to Jack as her spouse, adding her 100 shares to Jack's total attributed shares, making it 320 (220 + 100).

So, Jack is considered to own 320 shares (100 direct + 220 attributed) of X Corporation stock for tax purposes.

Jack owns 100 shares of X corporation stock. His wife Jill also owns 100 shares X corporation stock. Jack is 60% owner of Z corporation (a C corporation). Z corporation is owns 120 shares under section 318 because of attribution.a) True b) False

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Other Questions

Jack owns 100 shares of X corporation stock. His wife Jill also owns 100 shares X corporation stock. Jack is 60% owner of Z corporation (a C corporation). Z corporation is owns 120 shares under section 318 because of attribution.
a) True
b) False