Discussion:C-Corp dividends received
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DR BRISKET (talk|edits) said: | 23 February 2006 |
| I work with a C corp that holds some securities. The corp received some 1099-DIV's reporting the dividends received last year. My question is: do the "Qualified dividends" in box 1(b) of the 1099 DIV qualify for any special treatment, or are they just considered ordinary income to the corporation? | |
| 23 February 2006 | |
| Corporations are entitled to a dividends-received deduction for
dividends received from a domestic corporation. The deduction used to be 70, 80 or 100% based on the % ownership in distributing corporation. This deduction has been around for ages.. and is perhaps not what you were referring to. The qualified dividends box 1(b) refers to the 10/15% rate to individuals. I don't think it makes any difference to C corp shareholders. | |
DR BRISKET (talk|edits) said: | 23 February 2006 |
| WillyB--thanks for your input. Yes, I am familiar with the "dividends received" deduction available to corporations. These deductions are available from ordinary dividends. But, you did answer my question, which I now consider to be somewhat foolish! Since C-corps don't receive any kind special capital gain treatment, "Qualified Dividends" reported on Form 1099-D carry no meaning for C-Corps. I knew that all along, so now I'm asking myself why I even asked the question to begin with!!! Sorry about that! | |
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