Y Corporation has determined that it must pay personal holding company tax for its 2011 calendar tax year.Y Corporation has $600,000 in adjusted taxable income, has paid dividends of $30,000 in 2011, and has paid $10,000 in dividends by March 15, 2012.What is Y Corporation's personal holding company tax?

Question

Quizplus · Accepted Answer

The personal holding company tax is 15% of undistributed personal holding company income. The undistributed income is $600,000 - $30,000 - $10,000 = $560,000. The tax is 15% of $560,000, which is $84,000.

Y Corporation Has Determined That It Must Pay Personal Holding