26 CFR 1.544-3 – Constructive ownership by reason of family and partnership ownership
(a) The following example illustrates the application of section 544(a)(2), relating to constructive ownership by reason of family and partnership ownership.
Relationships Shares Shares Shares Shares Shares An individual (A)100 (B)20 (C)20 (D)20 (E)20 His father (AF)10 (BF)10 (CF)10 (DF)10 (EF)10 His wife (AW)10 (BW)40 (CW)40 (DW)40 (EW)40 His brother (AB)10 (BB)10 (CB)10 (DB)10 (EB)10 His son (AS)10 (BS)40 (CS)40 (DS)40 (ES)40 His daughter by former marriage (son’s half-sister) (ASHS)10 (BSHS)40 (CSHS)40 (DSHS)40 (ESHS)40 His brother’s wife (ABW)10 (BBW)10 (CBW)10 (DBW)160 (EBW)10 His wife’s father (AWF)10 (BWF)10 (CWF)110 (DWF)10 (EWF)10 His wife’s brother (AWB)10 (BWB)10 (CWB)10 (DWB)10 (EWB)10 His wife’s brother’s wife (AWBW)10 (BWBW)10 (CWBW)10 (DWBW)10 (EWBW)110 Individual’s partner (AP)10 A (including AF, AW, AB, AS, ASHS, AP) 160 B (including BF, BW, BB, BS, BSHS) 160 CW (including C, CS, CWF, CWB) 220 DB (including D, DF, DBW) 200 EWB (including EW, EWF, EWBW) 170 Total, or more than 50 percent 910
(b) For the restriction on the applicability of the family and partnership ownership rules of this section, see paragraph (b) of § 1.544-1. For rules relating to constructive ownership as actual ownership, see § 1.544-6.