26 CFR § 1.542-1 - General rule.

---
identifier: "/us/cfr/t26/s1.542-1"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "26 CFR § 1.542-1 - General rule."
title_number: 26
title_name: "Internal Revenue"
section_number: "1.542-1"
section_name: "General rule."
chapter_name: "INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY"
subchapter_number: "A"
subchapter_name: "INCOME TAX"
part_number: "1"
part_name: "INCOME TAXES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "26 U.S.C. 7805, unless otherwise noted."
regulatory_source: "T.D. 6500, 25 FR 11402, Nov. 26, 1960; 25 FR 14021, Dec. 21, 1960; T.D. 9989, 89 FR 17606, Mar. 11, 2024, unless otherwise noted."
cfr_part: "1"
---


# 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 § 1.542-2, and

(b) The stock ownership requirement specified in section 542(a)(2) and § 1.542-3.

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