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    Created by Michael Wessels
    1. U.S. Code
    2. Title 26
    3. Subtitle A
    4. CHAPTER 1
    5. Subchapter N
    6. PART III
    7. Subpart F

    § 958 Rules for determining stock ownership

    (a) Direct and indirect ownership

    (1) General rule

    For purposes of this subpart (other than section 960), stock owned means—

    (A) stock owned directly, and

    (B) stock owned with the application of paragraph (2).

    (2) Stock ownership through foreign entities

    For purposes of subparagraph (B) of paragraph (1), stock owned, directly or indirectly, by or for a foreign corporation, foreign partnership, or foreign trust or foreign estate (within the meaning of ) shall be considered as being owned proportionately by its shareholders, partners, or beneficiaries. Stock considered to be owned by a person by reason of the application of the preceding sentence shall, for purposes of applying such sentence, be treated as actually owned by such person.

    (3) Special rule for mutual insurance companies

    For purposes of applying paragraph (1) in the case of a foreign mutual insurance company, the term “stock” shall include any certificate entitling the holder to voting power in the corporation.

    (b) Constructive ownership

    For purposes of sections 951(b), 954(d)(3), 956(c)(2), and 957, section 318(a) (relating to constructive ownership of stock) shall apply to the extent that the effect is to treat any United States person as a United States shareholder within the meaning of section 951(b), to treat a person as a related person within the meaning of section 954(d)(3), to treat the stock of a domestic corporation as owned by a United States shareholder of the controlled foreign corporation for purposes of section 956(c)(2), or to treat a foreign corporation as a controlled foreign corporation under section 957, except that—

    (1) In applying paragraph (1)(A) of , stock owned by a nonresident alien individual (other than a foreign trust or foreign estate) shall not be considered as owned by a citizen or by a resident alien individual.

    (2) In applying subparagraphs (A), (B), and (C) of , if a partnership, estate, trust, or corporation owns, directly or indirectly, more than 50 percent of the total combined voting power of all classes of stock entitled to vote of a corporation, it shall be considered as owning all the stock entitled to vote.

    (3) In applying subparagraph (C) of , the phrase “10 percent” shall be substituted for the phrase “50 percent” used in subparagraph (C).