A corporation is subject to both the personal holding company tax and the accumulated earnings tax.Its regular taxable income is $200,000.Its adjusted taxable income for imposing the personal holding company tax is $170,000 and its taxable income for determining the accumulated earnings tax is $230,000.What is the corporation's total tax liability?

Question

Quizplus · Accepted Answer

$100,000 x .39 + $22,250 = $61,250 reg.tax; $170,000 x .20 = $34,000 PHC Tax; $61,250 + $34,000 = $95,250.(Only the PHC tax is imposed in addition to the regular tax.)

A Corporation Is Subject to Both the Personal Holding Company