### Question
How is the term expanded affiliated group defined?


### Answer
The term **expanded affiliated group** is defined in *26 U.S.C. § 162* as the following:

> an affiliated group as defined in section 1504(a), determined—


(I) by substituting "more than 50 percent" for "at least 80 percent" each place it appears, and


(II) without regard to paragraphs (2) and (3) of section 1504(b)

#### Citation:
  - *26 U.S.C. § 162*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VI-ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS**

