A corporation's "adjusted income from rents" will not be added to personal holding company income (PHCI) if the total of dividends paid, consent dividends, and throwback dividends is less than the amount by which nonrental PHCI exceeds 10 percent of ordinary gross income.

Question

Quizplus · Accepted Answer

The "adjusted income from rents" is considered part of PHCI unless it meets specific exceptions, such as being derived from a property leased at arm's length and constituting at least 50% of the adjusted ordinary gross income. The comparison of dividends paid and the excess of nonrental PHCI over 10% of ordinary gross income does not directly determine whether adjusted income from rents is added to PHCI.

A Corporation's "Adjusted Income from Rents" Will Not Be Added