answersLogoWhite

0


Best Answer

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.

User Avatar

Wiki User

โˆ™ 2007-09-08 01:16:53
This answer is:
User Avatar
Study guides

What is the body of law that governs the availability and use of federal funds

Who has the final word on how much money can be spent by a given agency or program under the separation of powers doctrine

How do you spell commitments

Which stage of disbursement accounting is also known as the accounts payable stage

โžก๏ธ
See all cards
3.76
โ˜†โ˜…โ˜†โ˜…โ˜†โ˜…โ˜†โ˜…โ˜†โ˜…
29 Reviews

Add your answer:

Earn +20 pts
Q: When a corporation receives a dividend from another corporation how is it taxed?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Which form of business organization is taxed twice?

a C corporation the corporation is a separate entity who's profits are taxed then what's left of those profits are distributed/shared by the individual share holders who will be taxed on their individual share of the profits. Where as in a S corporation, subchapter corporation, the corporation entity I believe doesn't get taxed only the individual share holders do. Most small businesses are S corporations.


Is an insurance dividend taxed currently or ever when applied to a paid up life insurance policy?

no it is not


Corporation advantages and disadvantages?

An advantage to having a corporation is limited liability. A disadvantage to having a corporation is the fact that income is taxed twice.


Who was president when social security was taxed?

ReganIt is taxed NOW, if the recepient receives above an amount of income otherwise.It USED to be not taxed.


What are some advantages to having an S Corporation?

Some advantages of having an S Corporation are allowing company owners to only be taxed once. Any profit made, goes to him so he will then be taxed once rather than twice.


What legal form of organization's income is not taxed under individual income tax rate?

corporation


When a company files as an LLC on a W9 form what would be the appropriate circumstance in which a corporation would be chosen as the tax classification?

If the corporation choses, under the "check the box" elections to be taxed as a corporation. Many do.


What is the tax rate when you sell a house owned by a corporation?

The profit from the sale of the house (amount of sale minus the basis) will be taxed as income for the corporation, at their usual rate.


Limited company may choose to retain profits?

Only if it is taxed as a proprietorship or partnership... If it is taxed as an S-Corporation, then the IRS does not like to see accumulations of earnings within the company.


What is the portion of corporate profits paid out to stockholders called?

The portion corporate profits paid out of stockholders is A dividend is quarterly payment to stockholders of record, as a return on investment. Dividends may be in cash, stock, or property, and are declared from operating surplus. If there is no surplus, the payment is considered a return on capital. Dividend payments are, in effect, taxed twice-once when corporate profits are taxed and again when the dividend is received by a taxpaying stockholder. The corporate profits paid out to stockholders is called dividends.


What is the difference between Inc and LLC?

Like a Corporation, an LLC offers limited liability to its owners. Unlike a Corporation, however, an LLC is taxed as a Partnership or Sole Proprietorship (unless the LLC elects to be taxed as a Corporation). This allows an LLC to pass all its income and losses through to the owners. Furthermore, the LLC has an advantage over a C-Corporation which makes an S-Corporation tax election because the S-Corporation can only have 100 stockholders and the stockholders cannot be Corporations or non-U.S.


On what basis are mutual funds taxed?

shareholders are taxed on the distribution of fund's income. For tax purpose, mutual funds distribute their net income to the shareholders in two ways: (1) dividend and interest payments and (2) realized capital gains.

People also asked