Holding company: Difference between revisions

 
===Personal holding company===
In the United States, a personal holding company is defined in section&nbsp;542 of the [[Internal Revenue Code]]. A corporation is a personal holding company if both of the following requirements are met:<ref>{{cite news |last=Cuiffo |first=Donna-Marie |url=https://www.cpajournal.com/2017/11/10/personal-holding-company-trap-federal-taxation/ |title=Our Greatest Hits / The Personal Holding Company Trap: Federal Taxation |work=The CPA Journal |publisher=The New York State Society of CPAs |date=1993-08-01 |accessdate=2017-12-06 }}</ref><ref>{{cite web| url=https://www.yourcompanyformations.co.uk/ |title= Company formations help }} Tuesday, 2 July 2019 </ref>
* 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.
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