personal holding company

personal holding company definition - business

personal holding company

A corporation with at least 60% of adjusted ordinary gross income being personal holding company income (passive income including dividends, interest, royalties, annuities, rents, and personal service income), and over 50% of the value of the corporation's outstanding stock owned by five or fewer executives. Undistributed corporate earnings are taxed in addition to the regular income tax.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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