The dividends-paid deduction for personal holding company tax and accumulated earnings tax is computed the same way.

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The dividends-paid deduction for personal holding company (PHC) tax is computed based on dividends actually paid during the tax year, while the accumulated earnings tax (AET) calculation allows for dividends paid after the close of the tax year but before the tax return is filed, if declared to be payable to shareholders as of a date in the tax year.

The Dividends-Paid Deduction for Personal Holding Company Tax and Accumulated