Explain to the company owner

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Reference no: EM132041063

One of your corporate clients has Section 541 personal holding company income in addition to ordinary income and has not distributed this income to shareholds. You explain to the company's owner that, because the income is undistributed, the corporation will be subject to:

  1. Deduction limitations
  2. The ordinary corporate income tax
  3. Carryover to excess income
  4. A special tax penalty

Reference no: EM132041063

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