### Question
How is the "parent-subsidiary controlled group" defined?


### Answer
The term **parent-subsidiary controlled group** is defined in *26 CFR § 1.1563-1* as follows -

> one or more chains of corporations connected through stock ownership with a common parent corporation if—

(A) Stock possessing at least 80 percent of the total combined voting power of all classes of stock entitled to vote or at least 80 percent of the total value of shares of all classes of stock of each of the corporations, except the common parent corporation, is owned (directly and with the application of § 1.1563-3(b)(1), relating to options) by one or more of the other corporations; 

#### Citation:
  - *26 CFR § 1.1563-1*
