dividend received deduction


dividend received deduction
dividend received deduction ( DRD)
Federal tax law allows a C corporation investing in the stock of other corporations to take a tax deduction for the dividend income received from other corporations. This tax treatment applies to dividends from preferred and convertible preferred stock in addition to common stock. The deduction is usually, but not always, 70 percent of the dividend amount received. American Banker Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • Dividends received deduction — The dividends received deduction[1] (or DRD ), under U.S. federal income tax law, is a tax deduction received by a corporation on the dividends paid to it by other corporations in which it has an ownership stake. Contents 1 History 2 Impact …   Wikipedia

  • Dividends Received Deduction - DRD — A tax deduction received by a corporation on the dividends paid to it by companies in which it has an ownership stake. The purpose of this deduction is to soften the consequences of triple taxation. Triple taxation occurs because the company… …   Investment dictionary

  • dividend — The distribution of current or accumulated earnings to the shareholders of a corporation pro rata based on the number of shares owned. Dividends are usually issued in cash. However, they may be issued in the form of stock or property. The… …   Black's law dictionary

  • dividend — The distribution of current or accumulated earnings to the shareholders of a corporation pro rata based on the number of shares owned. Dividends are usually issued in cash. However, they may be issued in the form of stock or property. The… …   Black's law dictionary

  • Dividend tax — Taxation An aspect of fiscal policy …   Wikipedia

  • Home mortgage interest deduction — Taxation An aspect of fiscal policy …   Wikipedia

  • DRD — dividend received deduction (DRD) Federal tax law allows a C corporation investing in the stock of other corporations to take a tax deduction for the dividend income received from other corporations. This tax treatment applies to dividends from… …   Financial and business terms

  • Corporate tax — Taxation An aspect of fiscal policy …   Wikipedia

  • Corporate tax in the United States — Part of a series on Taxation Taxation in the United States …   Wikipedia

  • Controlled Foreign Corporation — Taxation An aspect of fiscal policy …   Wikipedia