Chris Evan
Personal holding company[edit source | editbeta] In the United States, a personal holding company is defined in section 542 of the Internal Revenue Code. A corporation is a personal holding company if both of the following requirements are met:[2] Gross income test: At least 60% of the corporation's adjusted ordinary gross income is from dividends, interest, rent, and royalties. Stock ownership test: More than 50% in value of the corporation's outstanding stock is owned by five or fewer individuals.