For personal holding company tax purposes, a corporation meets the income requirement if 60 percent or more of the corporation's adjusted ordinary gross income is personal holding company income.

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This statement is true. The Internal Revenue Service (IRS) defines personal holding company income as income earned from passive activities such as dividends, interest, rent, royalties, and annuities. If a corporation derives 60 percent or more of its adjusted ordinary gross income from these sources, it is considered a personal holding company for tax purposes and may be subject to additional taxes.

For Personal Holding Company Tax Purposes, a Corporation Meets the Income