To determine whether adjusted income from rents is to be added to personal holding company income, two specific tests must be performed.Adjusted income from rents is not added to personal holding company income if both tests are met.The tests are known as the "50 percent test" and the "10 percent test." What information is used in performing the "50 percent test," in addition to adjusted income from rents?

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The "50 percent test" involves comparing the adjusted income from rents to the adjusted ordinary gross income. This test determines if more than 50% of the company's adjusted ordinary gross income comes from rents. If so, and if the "10 percent test" is also met, the adjusted income from rents is not added to personal holding company income.

To Determine Whether Adjusted Income from Rents Is to Be