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company income" generally to include dividends; interest;
royalties; rents; mineral, oil, and gas royalties;
copyright royalties; produced film rents; amounts received
as compensation for the use of corporate property by
certain large shareholders; amounts received under a
contract to furnish personal services; and certain amounts
relating to estates and trusts. The provision dealing with
rents, section 543(a)(2), provides that the term "personal
holding company income" means the portion of the adjusted
gross income which consists of:
(2) Rents.--The adjusted income from rents;
except that such adjusted income shall not be included
if--
(A) such adjusted income constitutes 50
percent or more of the adjusted ordinary gross
income, and
(B) the sum of--
(i) the dividends paid during the
taxable year (determined under section 562),
(ii) the dividends considered as paid
on the last day of the taxable year under
section 563(c)[(d)] (as limited by the
second sentence of section 563(b)), and
(iii) the consent dividends for the
taxable year (determined under section 565),
equals or exceeds the amount, if any, by which the
personal holding company income for the taxable year
(computed without regard to this paragraph and
paragraph (6), and computed by including as personal
holding company income copyright royalties and the
adjusted income from mineral, oil, and gas royalties)
exceeds 10 percent of the ordinary gross income.
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