### Question
How does Corporations Used to Avoid Income Tax on Shareholders define undistributed personal holding company income?


### Answer
Under *26 U.S.C. § 545*, **undistributed personal holding company income** is defined as:

> the taxable income of a personal holding company adjusted in the manner provided in subsections (b), (c), and (d), minus the dividends paid deduction as defined in section 561

#### 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**

