6. The personal holding company penalty tax rate is A) 20%. B) 10%. C) 15%. D) 35%.
6. The personal holding company penalty tax rate is
A) 20%.
B) 10%.
C) 15%.
D) 35%.
Homework Answers
Ans : (A) 20%
Explanation :
If any C corporation has at least 60% Of gross income from passive income than their status is changed to Personal Holding Company (PHC).
Now, if PHC does not made sufficient distributio to its shareholder,
IRS penalize PHC at 20% Rate.
Add Answer to:
6. The personal holding company penalty tax rate is A) 20%. B) 10%. C) 15%. D) 35%.
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6. The personal holding company penalty tax rate is A) 20%. B) 10%. C) 15%. D) 35% 7. Identify which of the following statements is false. A) The 65% dividends-received deduction can be claimed when computing a corporation's undistributed personal holding company income (UPHCI). B) Rental expenses in excess of rental income are added back to taxable income to arrive at personal holding company income (PHCI). Ramirez Corporation is a personal holding company. Its taxable income for this year is...
An additional tax is assessed on Personal holding companies (PHC) if owners of a personal holding company uses it to shelter investment income to be taxed at the corporate rate (21%) from their individual higher tax brackets and subject to the individual investment income surcharge. A PHC is defined as having over 60% of the adjusted ordinary gross income consisting of all of the following except: a. Business Income Net rent b. Royalties Dividends d Interest
1. Which of the following actions cannot be used to eliminate a possible personal holding company tax liability involving a corporation owned by a mother and a father? A) Sell additional stock to other family members. B) Make a cash distribution within 2 1/2 months of the end of the tax year. C) Make a deficiency distribution within 90 days of the date on which the IRS determines that a personal holding company liability is owed. D) Liquidate the corporation....
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