Which of the Following Statements Regarding the Personal Holding Company

question 82

Multiple Choice

Which of the following statements regarding the personal holding company tax is false?

• A) The personal holding company tax is imposed in addition to the regular corporate income tax.
• B) The personal holding company tax was originally enacted to discourage individuals from incorporating their investment portfolios.
• C) The personal holding company tax is calculated by a qualifying corporation and paid on its annual corporate income tax return.
• D) The personal holding company tax is assessed on a qualifying corporation's undistributed personal holding company income.