This Schedule PH Form 1120 guide explains the IRS U.S. Personal Holding Company (PHC) Tax. Schedule PH for Form 1120 addresses the personal holding company tax calculation. The applicable ownership and income tests and the computation of the relevant undistributed amount require a separate review. A corporation with investment income is not classified solely from that one fact.
Reviewed October 31, 2026. This is an independent guide. The version and availability information below identifies the IRS documents used for this page.
What Schedule PH Form 1120 does and who prepares it
A corporation uses the schedule when the personal holding company tax rules apply.
For the connected reporting route, see Form 1120. Keep the role of that document separate from the task explained on this page.
| Official form | Form 1120 (Schedule PH) |
|---|---|
| IRS title | U.S. Personal Holding Company (PHC) Tax |
| Guide period | the applicable reporting period |
| Target version | Nov 2015 |
| Availability | Current IRS catalog PDF |
| Last checked | October 31, 2026 |
Get the Schedule PH Form 1120 PDF and check its status
Use the IRS source to confirm the document before completing a real filing. The download link is a reference to the official file; it is not a statement that every copy inside the PDF may be printed and submitted. Follow any instructions about electronic filing, scannable copies, recipient copies or attachments.
Which version of Schedule PH Form 1120 should you use?
This form follows a revision or continuing-use format rather than a new title for every calendar year. Check the revision printed on the document and the period requested inside it. A revision date, transaction date and tax year are different pieces of information. The current document should be read with the instructions that apply to the actual transaction or return.
Records to gather for Schedule PH Form 1120
- Ownership records.
- Income-category workpapers.
- Distributions and dividends-paid information.
- Tax adjustment records.
- Corporate return.
Keep a working reconciliation with these records. It should show the source of each reported item, any correction made before filing and the reason a different amount appears on a connected form. This is especially useful when a statement is corrected or a prior-year balance continues into the current calculation.
How to work through Schedule PH Form 1120
- Confirm applicability. Start with the purpose, filer category and version of the form. Complete any eligibility or applicability question before spending time on the numerical calculation.
- Prepare the source workpapers. Gather the records listed below and reconcile their totals. Keep prior-year balances, current-year transactions and estimated payments separate where they serve different purposes.
- Complete dependent calculations first. When a line refers to another form, schedule or worksheet, finish that supporting calculation first. Preserve any classification, limitation and carryforward information.
- Follow the line sequence. Use the actual line labels and arithmetic in the applicable form. A line number from an older version may refer to something different after a revision.
- Reconcile the filing package. Check names, identifying numbers, tax periods, totals and required attachments. Then use the filing method, signature process and deadline that apply to this filer and form.
Form-specific IRS instructions and reporting details
The following points retain the operative wording of the IRS documents linked above. Read each point with its stated conditions and the applicable form version. References to another form or section describe a connected requirement; they do not mean that every reader must file every referenced document.
(Use with the November 2015 revision of Schedule PH (Form 1120)) U.S. Personal Holding Company (PHC) Tax Section references are to the Internal Revenue Code unless otherwise noted.
What’s New For tax years beginning after December 31, 2015, a corporation can elect to treat dividends paid after the end of the tax year and before the 16th day of the 4th month following the end of the tax year as paid during its tax year. Special rules apply to corporations with tax years ending in June. See the instructions for line 12.
Important: To determine if a corporation is a PHC, follow the steps below to complete Schedule PH and the Worksheet, later. 1. Complete Part I. Then, complete lines 1 through 5 of the Worksheet. 2. Complete Part II and then line 6 of the Worksheet. 3. Generally, if line 6 of the Worksheet is 60% or more and the stock ownership requirement (Part IV) is met, the corporation must file Schedule PH and pay the PHC tax. However, see Exceptions above. 4.
If the corporation determines that it must file Schedule PH and pay the PHC tax, it must complete Part III, line 26, to figure the amount of the PHC tax.
Additional reporting conditions
Deductions Line 5. Federal and foreign income, war profits, and excess profits taxes not deducted in figuring line 1. The corporation can deduct: Federal income taxes accrued during the tax year, and Income, war profits, and excess profits taxes accrued (or deemed paid) during the tax year to foreign countries and U.S. possessions.* The corporation cannot deduct: The accumulated earnings tax under section 531, or The PHC tax under section 541. *The foreign tax credit is not allowed against PHC tax.
But, as described above, the corporation can take a deduction for taxes paid to foreign countries and U.S. possessions even if a credit was claimed when figuring the corporation's income tax. Attach a schedule showing the type of tax, the tax year, and the amount. For more information, see section 545(b)(1). Line 6. Contributions. Figure the deduction using the limitations under sections 170(b)(1)(A), (B), (D), and (E), but without sections 170(b)(2) and (d)(1).
When figuring the limitations under section 170(b)(1), use taxable income figured with the adjustments (other than the 10% limitation) provided in sections 170(b) (2) and (d)(1) and without any expenses and depreciation disallowed under section 545(b)(6).
Important: If line 6 is less than 60%, the corporation is not a PHC. Do not file Schedule PH. Generally, if line 6 is 60% or more and the stock ownership requirement of section 542(a) is met, the corporation is a PHC. Complete Parts III and IV. For details and exceptions, see Who Must File and Personal Holding Company, earlier.
Calculations and supporting information
Line 4c. Deductions allocable to compensation. Compensation for the use of, or right to use, tangible personal property manufactured or produced by the corporation does not count as rents if the corporation is engaged in substantial manufacturing or production of the same type of property during the tax year. Enter deductions (listed below) allocable to this type of compensation. Depreciation and amortization of property (other than certain tangible personal property). Property taxes. Interest. Rent. Line 4d. Certain excluded interest income.
Include: Interest on a direct obligation of the United States held for sale by a dealer who is making a primary market for these obligations, and Interest on condemnation awards, judgments, and tax refunds.
Page 2 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.
Reading the lines and boxes
These selected labels come from the linked target PDF. They are a reading aid, not a replacement for the full line instructions or a completed calculation. Match the label and document version before transferring any amount.
| Line or box | Label in the source form | What to check |
|---|---|---|
| 1 | Taxable income before net operating loss deduction and special deductions. Enter amount | Complete the applicable eligibility and limitation workpapers before entering an amount. The label alone does not establish that every reported expense or payment qualifies. |
| 2 | Contributions deducted in figuring line 1. Enter amount from Form 1120, line 19 | Complete the applicable eligibility and limitation workpapers before entering an amount. The label alone does not establish that every reported expense or payment qualifies. |
| 3 | Excess expenses and depreciation under section 545(b)(6). Enter amount from Part V, | Check the applicable line instructions and keep the source workpaper with the return records. Transfer only the information that matches the field and reporting period. |
| 4 | Total. Add lines 1 through 3 | Follow the stated arithmetic and line references in sequence. Complete the referenced inputs first and retain the worksheet supporting the result. |
| 5 | Federal and foreign income, war profits, and excess profits taxes not deducted in figuring | Complete the applicable eligibility and limitation workpapers before entering an amount. The label alone does not establish that every reported expense or payment qualifies. |
Further selected fields
| Line or box | Label in the source form | What to check |
|---|---|---|
| 6 | Contributions deductible under section 545(b)(2). See instructions for limitation | Complete the applicable eligibility and limitation workpapers before entering an amount. The label alone does not establish that every reported expense or payment qualifies. |
| 7 | Net operating loss for the preceding tax year deductible under section 545(b)(4) | Use the date or tax period requested by this particular field. A payment date, acquisition date and return year can describe different facts. |
| 8a | Net capital gain from Schedule D (Form 1120), line 17 | Identify the income or transaction category before entering a total. Preserve the distinction between gross amounts, adjustments and the resulting taxable or reportable figure. |
| 9 | Deduction for dividends paid (other than dividends paid after the end of the tax year). Enter | Follow the stated arithmetic and line references in sequence. Complete the referenced inputs first and retain the worksheet supporting the result. |
| 10 | Total. Add lines 5 through 9 | Follow the stated arithmetic and line references in sequence. Complete the referenced inputs first and retain the worksheet supporting the result. |
A practical example
A closely held corporation has substantial investment-related income. Its preparer reviews the personal holding company tests and, if applicable, completes the additional calculation using the supported income and distribution records.
This example illustrates the order of the review. It does not assume an unverified deduction, exemption, treaty rate or final tax amount. The applicable form instructions and the actual records determine the result.
Common mistakes to avoid with Schedule PH Form 1120
- Check both the relevant ownership and income conditions.
- Distinguish personal holding company tax from ordinary corporate income tax.
- Preserve the calculation supporting any undistributed amount.
Questions about Schedule PH Form 1120
Does receiving or downloading this form mean I must file it?
A corporation uses the schedule when the personal holding company tax rules apply. The form purpose and the applicable filing or furnishing conditions determine the action. Downloading a blank PDF does not itself create a filing obligation or establish eligibility for a tax benefit.
Is the revision date always the same as the tax year?
No. Some forms show a tax year, while continuing-use forms show a revision date and ask separately for the reporting period. Check the actual document and instructions. Do not relabel a payment or transaction solely because it was reported in a later calendar year.
What should I do if the underlying information is wrong?
Check both the relevant ownership and income conditions. Keep the original record and the correction trail. The issuer correction process, an amended return and an updated certificate can be different procedures. Choose the process that matches the document and the actual error.
Which records should I keep with the completed form?
Retain the source documents, applicable worksheets, submitted version and filing or furnishing confirmations. For this form, the working file should include ownership records, income-category workpapers, distributions and dividends-paid information. Keep continuing balances and prior-year support for as long as they remain relevant under the applicable recordkeeping rules.
Related forms and next steps
Use these guides when the connected issue applies to your records. Each page has its own purpose, reporting year and availability status.