What appears to be the purpose of code sections 541, 542, and 543? That is, thinking broadly about the code section, what corporate behavior is the personal holding company tax trying to discourage?

 

2. Based on the portions of the code sections that follow, what is a personal holding company (and what is it not)?

 

3. What sorts of income does personal holding company income include (and exclude)?

 

4. What appears to be the purpose of excluding rental income sometimes and not other times?

 

5. Generalize formula for the Personal Holding Company Tax below:

PHC tax =

Answer rating: 100% (QA)

The purpose of Code Sections 541 542 and 543 of the US Internal Revenue Code is to address the issue of personal holding companies and discourage cert... View the full answer