26 C.F.R. § 1.553-1 Foreign personal holding company income.
Title 26 - Internal Revenue
Foreign personal holding company income shall consist of the items defined under section 543 and §§1.543–1 and 1.543–2, relating to personal holding company income, with the following exceptions: (a) The entire amount received as interest, whether or not treated as rent, shall be considered to be foreign personal holding company income. Thus, the exception in the second sentence of section 543(a)(1) and paragraph (b)(2) of §1.543–1 (relating to interest treated as rent under section 543(a)(7) and paragraph (b)(10) of §1.543–1), is inapplicable for the purpose of determining foreign personal holding company income. Similarly, section 543(a)(7) and paragraph (b)(10) of §1.543–1 are applied for this purpose without regard to the interest described in that section. (b)(1) The entire amount received as royalties, whether or not mineral, oil, or gas royalties, or copyright royalties, shall be considered to be foreign personal holding company income. Thus, subparagraphs (A) and (B) of section 543(a)(8) and paragraph (b)(11)(i) (a) and (b) of §1.543–1 (relating to mineral, oil, or gas royalties), and subparagraphs (A), (B), and (C) of section 543(a)(9) and paragraph (b) (12)(ii) of §1.543–1 (relating to copyright royalties), are inapplicable for the purpose of determining foreign personal holding company income. (2) In computing foreign personal holding company income, the first sentence of paragraph (b)(11)(ii) of §1.543–1 shall apply to overriding royalties received from the sublessee by the operating company which originally leased and developed the natural resource property in respect of which such overriding royalties are paid, and to mineral, oil, or gas production payments, only with respect to amounts received after September 30, 1958. [T.D. 6500, 25 FR 11737, Nov. 26, 1960, as amended by T.D. 6739, 29 FR 7715, June 17, 1964]
Title 26: Internal Revenue
PART 1—INCOME TAXES (CONTINUED)
Foreign Personal Holding Companies
§ 1.553-1 Foreign personal holding company income.
