### Question
How does the law define controlled group of corporations?


### Answer
Under *26 U.S.C. § 460*, **controlled group of corporations** is defined as:

> given to such term by section 1563(a), except that—


(A) “more than 50 percent” shall be substituted for “at least 80 percent” each place it appears in section 1563(a)(1), and


(B) the determination shall be made without regard to subsections (a)(4) and (e)(3)(C) of section 1563.

#### Citation:
  - *26 U.S.C. § 460*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart B-Taxable Year for Which Items of Gross Income Included**

