The excise tax imposed on private foundations for excess business holdings is imposed on investments that enable the private foundation to control publicly-held rather than privately-held businesses.

Question

Quizplus · Accepted Answer

The excise tax on excess business holdings applies to private foundations that hold more than a certain percentage of ownership in any business enterprise, whether publicly-held or privately-held, to prevent them from having control over the business.

The Excise Tax Imposed on Private Foundations for Excess Business