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Use the Form 1120SPH Tax Form Calculator Form 1120SPH as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 1120sph state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

IRS Schedule PH (Form 1120): U.S. Personal Holding Company Tax

Schedule PH is filed by corporations classified as personal holding companies (PHCs) to calculate the personal holding company tax owed under Internal Revenue Code Section 541. This tax is intended to prevent corporations from avoiding income tax at the individual level by retaining passive income within the corporate structure.

When to Use Schedule PH

Schedule PH is required for any corporation that meets the criteria of a personal holding company as defined under IRC §542. Generally, a corporation is considered a PHC if at least:

60% of its adjusted ordinary gross income is passive income (such as dividends, interest, rents, and royalties).
More than 50% of its stock is owned by five or fewer individuals during the last half of the tax year.

This form determines whether the corporation is subject to the additional PHC tax, currently imposed at a flat rate of 20% on undistributed personal holding company income.

Key Components of the Schedule

The 1120 Schedule PH is structured to compute the PHC income through a series of adjustments and exclusions:

Part I – Begins with taxable income and includes adjustments for deductions not allowed in computing PHC income.
Part II – Applies specific exclusions for active business income and other items.
Part III – Determines the amount of income subject to the PHC tax and calculates the final tax liability.

Although the form has not been revised since November 2015, it remains valid and must be completed accurately.

U.S. Personal Holding Company (PHC) Tax
Name							Employer identification number
Part I Undistributed Personal Holding Company Income (see instructions)
Additions	1	Taxable income before net operating loss deduction and special deductions. Enter amount from Form 1120, line 28					1
	2	Contributions deducted in figuring line 1. Enter amount from Form 1120, line 19					2
	3	Excess expenses and depreciation under section 545(b)(6). Enter amount from Part V, line 2					3
	4	Total. Add lines 1 through 3					4
Deductions	5	Federal and foreign income, war profits, and excess profits taxes not deducted in figuring line 1 (attach schedule)					5
	6	Contributions deductible under section 545(b)(2). See instructions for limitation Contributions deductible under section 545(b)(2). See instructions for limitation					6
	7	Net operating loss for the preceding tax year deductible under section 545(b)(4)					7
	8a	Net capital gain from Schedule D (Form 1120), line 17			8a
	b	Less: Income tax on this net capital gain (see section 545(b)(5)) (attach computation)			8b
	9	Deduction for dividends paid (other than dividends paid after the end of the tax year). Enter amount from Part VI, line 5					9
	10	Total. Add lines 5 through 9					10
	11	Subtract line 10 from line 4					11
	12	Dividends paid after the end of the tax year (other than deficiency dividends defined in section 547(d)), but not more than the smaller of line 11 or % of Part VI, line 1					12
	13	Undistributed PHC income. Subtract line 12 from line 11					13
Note: If the information in Part II and Part IV is not submitted with the return, the limitation period for assessment and collection of the PHC tax is any time within 6 years after the return is filed. See section 6501(f).
Part II Personal Holding Company Income (see instructions)
14a	Dividends				14a
b	Less: Dividends excluded (under section 543(a)(1)(C))				14b		14c
15a	Interest				15a
b	Less: Amounts excluded (attach schedule)				15b		15c
16	Royalties (other than mineral, oil, gas, or copyright royalties)						16
17	Annuities						17
18a	Rents				18a
b	Less: Adjustments to rents (attach schedule)				18b		18c
19a	Mineral, oil, and gas royalties				19a
b	Less: Adjustments to mineral, oil, and gas royalties (attach schedule)				19b		19c
20	Copyright royalties						20
21	Produced film rents						21
22	Compensation received for use of corporation property by % or more shareholder						22
23	Amounts received under personal service contracts and from their sale						23
24	Amounts includible in taxable income from estates and trusts						24
25	PHC income. Add lines 14 through 24						25
Part III Tax on Undistributed Personal Holding Company Income (see instructions)
26	PHC tax. Multiply the amount on line 13 by %. Enter the result here and on Schedule J (Form 1120), line 8, or on the proper line of the appropriate tax return						26
Part IV Stock Ownership Requirement Under Section 542(a)(2) Enter the names and addresses of the individuals who together owned, directly or indirectly, at any time during the last half of the tax year, more than 50% in value of the outstanding stock of the corporation.
(a) Name				(b) Address				Highest percentage of shares owned during last half of tax year
								(c) Preferred	(d) Common
1								%	%
								%	%
								%	%
								%	%
								%	%
2	Add the amounts in columns (c) and (d) and enter the totals here ▸							%	%
Part V Excess of Expenses and Depreciation Over Income From Property Not Allowable Under Section 545(b)(6) (see instructions for Part I, line 3)
(a) Description of property		(b) Date acquired	(c) Cost or other basis	(d) Depreciation deduction	(e) Repairs, insurance, and other expenses (section 162) (attach schedule)	(f) Total of columns (d) and (e)		(g) Income from rent or other compensation	(h) Excess (col. (f) less col. (g))
1





2	Total excess of expenses and depreciation over rent or other compensation. Add the amounts in column (h). Enter the total here and on Part I, line 3
	Note: Attach a statement showing the names and addresses of persons from whom rent or other compensation was received for the use of, or the right to use, each property.
Part VI Deduction for Dividends Paid Under Sections 561 and 562
1	Taxable dividends paid. Do not include dividends considered as paid in the preceding tax year under section 563 or deficiency dividends as defined in section 547						1
2	Consent dividends. Attach Forms 972 and 973						2
3	Taxable distributions. Add lines 1 and 2						3
4	Dividend carryover from first and second preceding tax years. Attach computation						4
5	Deduction for dividends paid. Add lines 3 and 4. Enter the total here and on Part I, line 9						5

How to Determine PHC Status

Corporations should conduct a two-part test annually:

Ownership Test: Evaluate shareholder concentration.
Income Test: Analyze the sources of gross income.

If both conditions are met, the corporation is required to file Schedule PH and pay any resulting tax unless it distributes sufficient income through dividends to avoid the liability.

Filing Notes and Compliance

The Schedule PH must be attached to Form 1120. It is important to retain supporting documentation for ownership records, income sources, and adjustments, especially if claiming any exceptions or exclusions. Failure to file or misclassification can result in IRS penalties.

If you're unsure whether your corporation meets the PHC criteria or want to estimate your tax liability, use our dedicated tool: 1120 Schedule PH Calculator.

Last reviewed: : If you believe this form requires an update, please contact us.

Conclusion

Understanding and complying with the rules for personal holding companies is essential for corporations with significant passive income and concentrated ownership. While the 1120 Schedule PH has not changed in recent years, it remains a crucial compliance document. Leverage the guidance provided here, alongside our PHC calculator, to ensure accurate reporting and avoid unnecessary IRS scrutiny or penalties.

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Frequently Asked Questions

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Start with Form 3800 and then reflect the credit here.

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Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.