Dividends-received deduction

Article Abstract:

A hypothetical situation describes an accrual-basis calendar year C corporation that collected $100,000 in dividend income from the common stock it had in an unrelated domestic corporation in 1994. This stock was not financed through debt and was retained for more than one year. The company reported that its loss from its operations was $10,000 while its taxable income before dividends-received deduction was $90,000. Based on these data, the dividends-received deduction of the company for its 1994 tax return was $63,000. Sec. 243 holds that a corporation that obtains dividends from a taxable domestic corporation usually can apply for the special dividends-received deduction. The three categories of dividends-received deductions are 70% deduction, 80% deduction and 100% deduction.

Tax deductions, Tax assessment

---

Personal holding companies

Article Abstract:

Aquestion on the deduction of dividends in the computation of personal holding company tax due in 1990 is considered. The question, which was taken from the certified public accountant (CPA) examination, involves a personal holding company with undistributed personal holding income of $100, 000, paid dividends for 1990 of $20,000 and consent dividends of $10,000 reported in the 1990 tax returns of its stockholders. The answer to the question is provided and the method for arriving at the answer is provided and discussed with reference to the provisions of the Internal Revenue Code.

Holding companies, not elsewhere classified, Holding companies, Dividends

---

CPA tax questions

Article Abstract:

Official questions from the CPA examination and unofficial answers are presented. The gift tax exclusion typically is levied on the donor since the tax is levied on the exercise of the donor's property transfer to another person for less than full consideration. Gains or losses in securities transactions are determined by the stock's holding period, with the gain or loss being recognized in the year in which the holding period ends. Losses from passive activities only can be used to offset losses emanating from other passive activities.

Analysis, Tax accounting, Tax administration and procedure, Tax administration, Securities, Loss deductions, Gift tax, Securities taxes, column

Similar abstracts:

• Abstracts: Turns in direction. Quoting Jones. Corporate Scotland takes over
• Abstracts: Bloodied, but not beaten. A natural source of cash. From devastation to survival
• Abstracts: Alphabet soup. Electronic data interchange: ties that bind. Time to think about the unthinkable
• Abstracts: Desk top laser printers for the smaller firm. Contracting out company services
• Abstracts: 401(k) plans still flexible despite antibias rules. Charitable trusts are an alternative to qualified plans

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.