All Passive Income Earned by a CFC Will Be Treated

question 12

True/False

All passive income earned by a CFC will be treated as foreign personal holding company income under subpart F for U.S. tax purposes.
Same country interest payments between related CFCs and rents and royalties derived in the active conduct of a trade or business are excluded from the definition of foreign personal holding company income under subpart F.

---

Definitions:

Implicit Memory

A type of long-term memory that enables us to perform tasks without conscious awareness of these previous experiences.

Consciousness

The state of being aware of and able to think about one's surroundings, thoughts, and experiences.

Cognitive Awareness

The mental state of being conscious of one's own thoughts, emotions, and sensory experiences.

Introspection

The process of “looking within” to observe one’s own thoughts, beliefs, and feelings.