Personal Holding Company Income

Personal Holding Company Income means:
the portion of adjusted ordinary gross income (AOGI) of a personal holding company (PHC) that consists of dividends, interest income, royalties, annuities, certain rents, certain mineral, oil, and gas royalties, copyright royalties, produced film rents, personal service contract income, use of corporate property by shareholders, and similar passive-type income. If more than 60% of a corporation's AOGI is PHC income and the five largest stockholders, taken together, own more than 50% of the corporation, the corporation may be defined as a PHC, which is subject to the 39.6% PHC penalty tax. Former IRC (check if this IRC provision is current here) § 543.

See Dividend in the American Legal Encyclopedia and Dividend in the World Legal Encyclopedia.