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Simple English definitions for legal terms

personal-holding-company tax

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A quick definition of personal-holding-company tax:

A personal-holding-company tax is a type of tax that is imposed on a company that mainly holds investments and does not have active business operations. This tax is meant to discourage individuals from using a company to avoid paying personal income tax. Taxes are charges imposed by the government on people, businesses, transactions, or property to generate public revenue. They can take many forms and are used to support government operations and public needs.

A more thorough explanation:

A personal-holding-company tax is a type of tax that is imposed on a holding company. A holding company is a company that owns other companies' stocks, bonds, or assets. The personal-holding-company tax is imposed on the company's undistributed income, which is the income that the company has earned but has not distributed to its shareholders as dividends.

  • ABC Holding Company has earned $100,000 in profits but has not distributed any dividends to its shareholders. The company will be subject to the personal-holding-company tax on the $100,000 of undistributed income.
  • XYZ Holding Company has earned $50,000 in profits and has distributed $30,000 as dividends to its shareholders. The company will not be subject to the personal-holding-company tax on the $20,000 of undistributed income.

These examples illustrate how the personal-holding-company tax is imposed on the undistributed income of a holding company. If a holding company retains its earnings to avoid paying income tax, it may be subject to this penalty tax.

personal holding company | personali exceptione

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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