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How do federal income taxes treat dividends received by corporations compared to dividends received by individuals?

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How do federal income taxes treat dividends received by corporations compared to dividends received by individuals?
Answered Same Day Dec 26, 2021

Solution

Robert answered on Dec 26 2021
137 Votes
Rules regarding taxation of “Dividends received by Corporations” are detailed under “26 U.S. Code §
243”.
The rules are as follows:
1) 70% of dividends received from a domestic corporation shall be allowed as deduction
provided dividends are not received from either of an “Affiliated Group” & “Life Insurance
Companies”.
2) 100% of dividends received by a small business investment company operating under the
Small Business Investment Act of 1958 (15 U.S.C. 661 and following) shall be allowed as
deductions.
3) 100% of dividends received as a qualifying dividends shall be allowed as deduction.
Qualifying Dividends means any dividends received by a...
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