§ 465(c)(7)(B)

a qualified C corporation

UNDECIDED

0 of 2 settled

  1. 1

    § 465(c)(7)(B)

    ALL OF
    “any corporation described in subparagraph (B) of subsection (a)(1) which is not—” Opening words
    NOT“a personal holding company (as defined in section 542(a))” unless Step 2 Personal holding company UNDECIDED
    NOT“a personal service corporation (as defined in section 269A(b) but determined by substituting “5 percent” for “10 percent” in section 269A(b)(2))”
  2. 2

    § 542(a)

    Personal holding company

    ALL OF

    For purposes of this subtitle, the term “personal holding company” means any corporation (other than a corporation described in subsection (c)) if—

    “other than a corporation described in subsection (c)” Opening words
    “At least 60 percent of its adjusted ordinary gross income (as defined in section 543(b)(2)) for the taxable year is personal holding company income (as defined in section 543(a)), and” § 542(a)(1)
    “At any time during the last half of the taxable year more than 50 percent in value of its outstanding stock is owned, directly or indirectly, by or for not more than 5 individuals. For purposes of this paragraph, an organization described in section 401(a), 501(c)(17), or 509(a) or a portion of a trust permanently set aside or to be used exclusively for the purposes described in section 642(c) or a corresponding provision of a prior income tax law shall be considered an individual.” § 542(a)(2)

    Cases: Eller v. Commissioner, 77 T.C. 934 (1981)