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Schedule G (Form 1120) (Rev. 12-2011) Page 2
Example 1. Corporation A owns,
General Instructions directly, a 50% interest in the profit, loss, Specific Instructions
or capital of Partnership B. Corporation A
Purpose of Form also owns, directly, a 15% interest in the Part I
Use Schedule G (Form 1120) to provide profit, loss, or capital of Partnership C and Complete Part I if the corporation
information applicable to certain entities, owns, directly, 15% of the voting stock of answered “Yes” to Form 1120, Schedule K,
individuals, and estates that own, directly, Corporation D. Partnership B owns, Question 4a. List each foreign or domestic
20% or more, or own, directly or indirectly, directly, a 70% interest in the profit, loss, corporation, partnership, trust, or tax-
50% or more of the total voting power of all or capital of Partnership C and owns, exempt organization that owns, at the end
classes of the corporation’s stock entitled directly, 70% of the voting stock of of the tax year, directly 20% or more, or
to vote. Corporation D. Corporation A owns, owns, directly or indirectly, 50% or more of
indirectly, through Partnership B, a 35% the total voting power of all classes of the
Who Must File interest (50% of 70%) in the profit, loss, or corporation’s stock entitled to vote.
capital of Partnership C and owns, Indicate the name of the entity, employer
Every corporation that answers “Yes” to indirectly, 35% of the voting stock of identification number (if any), type of entity
Form 1120, Schedule K, Questions 4a or Corporation D. Corporation A owns, (corporation, partnership, trust, or tax-
4b, must file Schedule G to provide the directly or indirectly, a 50% interest in the exempt organization), country of
additional information requested for certain profit, loss, or capital of Partnership C organization, and the percentage owned,
entities, individuals, and estates owning the (15% directly and 35% indirectly), and directly or indirectly, of the voting stock of
corporation’s voting stock. owns, directly or indirectly, 50% of the the corporation.
voting stock of Corporation D (15% directly
Constructive Ownership of and 35% indirectly). For an affiliated group filing a
consolidated tax return, list the parent
the Corporation Corporation D reports in Part I that its corporation rather than the subsidiary
For purposes of Schedule G (Form 1120), voting stock is owned, directly or indirectly, members. List the entity owner of a
the constructive ownership rules of section 50% by Corporation A and is owned, disregarded entity rather than the
267(c) (excluding section 267(c)(3)) apply to directly, 70% by Partnership B. disregarded entity. If the owner of a
ownership of interests in corporate stock Example 2. A owns, directly, 50% of the disregarded entity is an individual rather
and ownership of interests in the profit, voting stock of Corporation X. B, the than an entity, list the individual in Part II.
loss, or capital of a partnership. An interest daughter of A, does not own, directly, any
in the corporation owned directly or interest in Corporation X and does not Part II
indirectly by or for another entity own, indirectly, any interest in Corporation Complete Part II if the corporation
(corporation, partnership, estate, or trust) is X through any entity (corporation, answered “Yes” to Form 1120, Schedule K,
considered to be owned proportionately by partnership, trust, or estate). Therefore, the Question 4b. List each individual or estate
the owners (shareholders, partners, or family attribution rules do not apply and, that owns, at the end of the tax year,
beneficiaries) of the owning entity. Also, for the purposes of Part II, the 50% interest directly 20% or more, or owns, directly or
under section 267(c), an individual is of A in Corporation X is not attributed to B. indirectly, 50% or more, of the total voting
considered to own an interest owned
directly or indirectly by or for his or her Example 3. A owns, directly, 50% of the power of all classes of the corporation’s
family. The family of an individual includes voting stock of Corporation X. B, the stock entitled to vote. Indicate the name of
only that individual’s spouse, brothers, daughter of A, does not own, directly, any the individual or estate, taxpayer
sisters, ancestors, and lineal descendants. interest in X but does own, indirectly, 10% identification number (if any), country of
of the voting stock of Corporation X citizenship (for an estate, the citizenship of
An interest will be attributed from an through Trust T of which she is the sole the decedent), and the percentage owned,
individual under the family attribution rules beneficiary. No other family member of A or directly or indirectly, of the voting stock of
only if the person to whom the interest is B owns, directly, any interest in the corporation.
attributed owns a direct or an indirect Corporation X nor does any own, indirectly,
interest in the corporation under section any interest in Corporation X through any
267(c)(1) or (5). However, for purposes of entity. Neither A nor B owns any other
these instructions, an individual will not be interest in Corporation X through any entity.
considered to own, under section 267(c)(2),
an interest in the corporation owned, For the purposes of Part II, the 50%
directly or indirectly, by a family member interest of A in the voting stock of
unless the individual also owns an interest Corporation X is attributed to B and the
in the corporation either directly or 10% interest of B in the voting stock of
indirectly through a corporation, Corporation X is attributed to A. A owns,
partnership or trust. directly or indirectly, 60% of the voting
stock of Corporation X, 50% directly and
10% indirectly through B. B owns, directly
or indirectly, 60% of the voting stock of
Corporation X (50% indirectly through A
and 10% indirectly through Trust T).
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