[Code of Federal Regulations]
[Title 26, Volume 7]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.542-1]

[Page 255]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.542-1  General rule.

    A personal holding company is any corporation (other than one 
specifically excepted under section 542(c)) which, for the taxable year, 
meets:
    (a) The gross income requirement specified in section 542(a)(1) and 
Sec. 1.542-2, and
    (b) The stock ownership requirement specified in section 542(a)(2) 
and Sec. 1.542-3.

Both requirements must be satisfied with respect to each taxable year.