### Question
What is the definition of 20-percent owned corporation?


### Answer
The definition of **20-percent owned corporation** is as follows in *26 U.S.C. § 243*:

> any corporation if 20 percent or more of the stock of such corporation (by vote and value) is owned by the taxpayer

#### Citation:
  - *26 U.S.C. § 243*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VIII-SPECIAL DEDUCTIONS FOR CORPORATIONS**

