Personal holding company[edit source | editbeta]
In the United States, a personal holding company is defined in section 542 of the Internal Revenue Code. A corporation is a personal holding company if both of the following requirements are met:[2]
Gross income test: At least 60% of the corporation's adjusted ordinary gross income is from dividends, interest, rent, and royalties.
Stock ownership test: More than 50% in value of the corporation's outstanding stock is owned by five or fewer individuals.
Printed copy · Anthology Volume 3, page 1287Printed copy from The Tender For Law Anthology, Volume 3, page 1287 (printed 13 June 2014). Added by this site; not part of the Facebook export.