### Question
How is the "undistributed personal holding company income" defined?


### Answer
The term **undistributed personal holding company income** is defined in *26 U.S.C. § 545* as follows -

> the amount determined by multiplying the undistributed personal holding company income (determined without regard to this sentence) by the percentage in value of its outstanding stock which is the greatest percentage in value of its outstanding stock so owned by United States persons on any one day during such period

#### Citation:
  - *26 U.S.C. § 545*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter G-Corporations Used to Avoid Income Tax on Shareholders > PART II-PERSONAL HOLDING COMPANIES**

