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The dividend exclusion for corporations receiving dividends from another corporation has resulted in?
Wiki User
∙ 13y ago
stock investments being relatively more attractive relative to bond investments made by one corporation in another corporation.
Wiki User
∙ 13y ago
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When a corporation receives a dividend from another corporation how is it taxed?
Dividends are income to the receiving corporation. If it is a sub-chapter S corporation, it is income to the shareholders, as is any other income of the corporation.
What is a attribute of a corporation's shares?
One attribute of a corporation's shares is their ownership representation in the company, providing shareholders with certain rights and privileges such as voting at shareholder meetings and receiving dividends. Shares also represent the proportional ownership in the corporation's assets and earnings.
When are dividends taxed on life insurance?
If you are receiving dividends from a life insurance policy, do you have to pay taxes and what %
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.
How will children get support from father receiving cash dividends from bank?
I suggest you contact your State's child support agency about this.
What is the dividend received deduction?
If a company receives dividends from another company it is entitled to a deduction of 70 percent of the dividends that it receives. However, if the receiving company owns 20 percent or more then the deduction is 80 percent.
What is Paid up additional Insurance?
Paid up additions is a method of receiving your dividends from a mutual insurance company. Paid up additions is actually a very good method as it allows a policyholder to use their dividends to purchase paid up additional insurance in the policy thereby increasing coverage and increasing annual dividends because dividends are also paid on the additional insurance. You do not have to pay taxes on the dividends paid in this manner either.
Can a professional corporation be an s corp?
Yes, businesses that would normally be designated as Professional Corporations and taxed at a flat 35%, can choose to file a 2553 form (sub-S election) and become a pass-through entity for tax purposes.A Licensed Professional choosing to operate his/her business as a corporation, would do so as a "Professional Corporation". All Stockholders of a Professional Corporation must be licensed in the field of operations; Only Doctors can be the owners of a Professional Corporation in the Medical field, only Real estate Professionals can be stockholders in a Real Estate Corporation, etc. The Industry may also have verbiage requirements in the Articles of Incorporation, specifically limiting the scope of business, or formally declaring certain liabilities.All of this is still available if the corporation additionally elects S-corp Status.ELIGIBILITY For a corporation to be eligible for S corporation status, the following conditions must be met and maintained:The business must have become a corporation prior to filing for S corporation status. See "Incorporation" for more information on this process.The business must also have no more than 75 stockholders. Until the Small Business Job Protection Act of 1996 was passed, corporations with more than 35 shareholders were disqualified, but now the limit is 75, allowing most small businesses to fall within the guidelines.All of the business's stock must be owned by individuals who reside in or are citizens of the United States. Estates or trusts may be allowed as stockholders, but corporate or foreign investors are not allowed. This includes other businesses that are not corporations, such as partnerships or sole proprietorships. This provision, therefore, excludes corporate subsidiaries from claiming S corporation status.The business must issue only one class of stock. This means that with the purchase of stock must come the same economic rights, such as receiving dividends or compensation in the event of liquidation at the same time and in the same amount per share as all other shareholders. Voting rights may differ amongst the shareholders without being considered a sign of the possession of different classes of stock.INELIGIBLE BUSINESSES Those businesses that are ineligible for S corporation status include:All financial institutions, such as banks and savings and loansInsurance companiesBusinesses that receive 95 percent or more of their gross income from exports (also known as DISCs, Domestic International Sales Corporations)Corporations that use the possessions tax creditC Corporations that have been S corporations within the last five years
Discuss the advantages and disadvantages of capital market?
advantages will be innovation is driven forward in a free capitalist economy with investors receiving dividends from successful ventures.
What is the significance of an insurance company demutualizing?
This means that the company is ceaseing to be a mutual company (owned by the policyholders) and is becoming a corporation. For a customer of that company it most likely means that you will no longer receive dividends if you have been receiving them and that your rates will most likely go down slightly. In most cases the company will send you some sort of correspondence throughout the process... which could take years.
What is the definition of reinvestment?
ReinvestmentUsing dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash.Viper1
What is the difference between a director and a promoter in a company?
A promoter is a founder of a company. He may or may not be the director of the company. If the promoter is a director of the company as well, then he is subject to receiving of dividends as per his proportion of shareholding in the company.
