# Treas. Reg. § 1.542-1: General rule.

Source: eCFR as of 2026-10-19 <https://www.ecfr.gov/current/title-26/section-1.542-1>. Interprets 26 U.S.C. § 542.

A personal holding company is any corporation (other than one specifically excepted under section 542(c)) which, for the taxable year, meets: 

(a) The gross income requirement specified in section 542(a)(1) and § 1.542-2, and 

(b) The stock ownership requirement specified in section 542(a)(2) and § 1.542-3. 

Both requirements must be satisfied with respect to each taxable year.