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When a company issues a stock dividend, rather than cash, there usually are no tax consequences until the shares are sold. These additional shares of stock are usually distributed to shareholders at no cost.
Please see the following site for additional information:
http://en.wikipedia.org/wiki/Dividend
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∙ 13y ago
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If you have income from stock dividends and losses from stock trades can you deduct the loss from the dividends for tax purposes?
No. But for many both complex financial and tax reasons, it makes no difference,
Which of the following are income tax deductible items to a corporation Common stock dividends preffered stock dvidends retained earnings or Bond interest expenses?
Interest expenses are tax deductible.
What is cost basis of stock?
The cost basis is the original value of an asset adjusted for stock splits, dividends or capital distributions. It is used to figure capital gain or loss for tax purposes
Why are large stock dividends accounted at par value?
ALL _______ Dividends increase the supply of stock, which decreases the price Large stock dividends have a significant effect on the price of stock, so the current market value can NOT be used to value large stock dividends – and the only remaining choice is PAR or STATED VALUE Small stock dividends have only a minor effect on prices, so the current stock price is still used to value the stock dividend Reduction in the price due to an increase in numbers of shares is called “dilution
Is dividends payable in stock a liability?
No,
If you have income from stock dividends and losses from stock trades can you deduct the loss from the dividends for tax purposes?
No. But for many both complex financial and tax reasons, it makes no difference,
A big advantage of preferred stock is that preferred stock dividends are tax deductible for the issuing corporation?
Not in the US, anyhow.
For investing in shares do you need a tax return file?
No, the buying of stock in itself does not cause any taxable event. The selling would. Also, if the stock pays any dividends, the dividends could be taxable.
Which of the following are income tax deductible items to a corporation Common stock dividends preffered stock dvidends retained earnings or Bond interest expenses?
Interest expenses are tax deductible.
Why would a corporation rather borrow money and pay interest than sell stock and then pay dividends?
Interest is tax deductible, so amounts paid lower the tax they would have otherwise paid. Dividends are paid with after tax earnings..there is no tax deduction for them. Of course, someone receiving interest pays tax on it at their ordinary income rate, and someone receiving dividends pays tax at the capital gain rate, which is lower.
Which dividends do not reduce stockholders' equity?
stock dividends
Are dividends paid on treasury stock?
cash dividends are not paid on treasury stock, but what about stock dividends? I would think stock dividends would apply to treasury shares, but would like to know for sure. Also, I assume stock splits apply to treasury shares and would like this verified.
What has the author Robert Tannenwald written?
Robert Tannenwald has written: 'Tax reform, double taxation of dividends, and the integration of the corporation and individual income taxes' -- subject(s): Income tax, Law and legislation, Taxation 'Corporate deduction for dividends paid on preferred stock' -- subject(s): Corporations, Dividends, Finance, Stocks
Do stock dividends always pay monthly?
No, stock does not always pay dividends at all much less monthly.
What is cost basis of stock?
The cost basis is the original value of an asset adjusted for stock splits, dividends or capital distributions. It is used to figure capital gain or loss for tax purposes
Why are large stock dividends accounted at par value?
ALL _______ Dividends increase the supply of stock, which decreases the price Large stock dividends have a significant effect on the price of stock, so the current market value can NOT be used to value large stock dividends – and the only remaining choice is PAR or STATED VALUE Small stock dividends have only a minor effect on prices, so the current stock price is still used to value the stock dividend Reduction in the price due to an increase in numbers of shares is called “dilution
Is dividends payable in stock a liability?
No,
