excess net passive income
Defined in 1 place of the United States Code.
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.
Source
- 1994–present26 U.S.C. § 1375Internal Revenue Code · Tax imposed when passive investment income of corporation having accumulated earnings and profits exceeds 25 percent of gross receipts · for purposes of this section