Posted by James Buster on June 06, 2002 at 19:02:09:
My cursory understanding of tax law is that interest
income from notes is subject to the personal holding
company tax when held by a C corporation. Is this so?
Is this avoidable or have any exceptions? For example,
rents are also considered PHC income except when the
corporation has more than 50% of income from rents, in
which case it is considered an active real estate
business and not subject to the tax.