26 CFR § 2.1-27 - Controlled corporation.

---
identifier: "/us/cfr/t26/s2.1-27"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "26 CFR § 2.1-27 - Controlled corporation."
title_number: 26
title_name: "Internal Revenue"
section_number: "2.1-27"
section_name: "Controlled corporation."
chapter_name: "INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY"
subchapter_number: "A"
subchapter_name: "INCOME TAX"
part_number: "2"
part_name: "MARITIME CONSTRUCTION RESERVE FUND"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Sec. 511(b), 49 Stat. 1985, as amended, sec. 7805, 68A Stat. 917; 26 U.S.C. 7805, 46 U.S.C. 1161(b)."
regulatory_source: "T.D. 6820, 30 FR 6030, Apr. 29, 1965, unless otherwise noted."
cfr_part: "2"
---


# 2.1-27 Controlled corporation.

For the purpose of section 511 of the Act and the regulations in this part a new vessel is considered as constructed, reconstructed, reconditioned, or acquired by the taxpayer if constructed, reconstructed, reconditioned, or acquired by a corporation at a time when the taxpayer owns not less than 95 percent of the total number of shares of each class of stock of the corporation.