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excess net passive income

Defined in 1 dictionary — U.S. Code

United States Code

26 U.S.C. § 1375 — for purposes of this section

Except as provided in subparagraph (B), the term “excess net passive income” means an amount which bears the same ratio to the net passive income for the taxable year as—

(i) the amount by which the passive investment income for the taxable year exceeds 25 percent of the gross receipts for the taxable year, bears to

(ii) the passive investment income for the taxable year.