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Simple English definitions for legal terms

dividend-received deduction

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A quick definition of dividend-received deduction:

Dividend-Received Deduction: A special rule that allows a company to reduce the amount of taxes it owes on dividends it receives from other companies based in the United States. This deduction is only available to corporate shareholders and is governed by specific sections of the Internal Revenue Code.

A more thorough explanation:

Definition: The dividend-received deduction is a tax deduction that allows a corporation to reduce its taxable income by the amount of dividends received from another domestic corporation. This deduction is provided under the Internal Revenue Code (IRC) sections 243-247.

Example: Suppose a corporation, ABC Inc., owns 1,000 shares of XYZ Inc. and receives a dividend of $10,000 from XYZ Inc. In this case, ABC Inc. can claim a dividend-received deduction of $9,000 (90% of $10,000) on its tax return. This means that ABC Inc. will only pay taxes on $1,000 of the dividend income instead of the full $10,000.

Explanation: The dividend-received deduction is a tax incentive provided to encourage corporations to invest in other domestic corporations. The deduction allows the receiving corporation to reduce its taxable income by a percentage of the dividend income received. In the example above, ABC Inc. received a $10,000 dividend from XYZ Inc. and was able to claim a deduction of $9,000, which reduced its taxable income. This deduction helps to reduce the overall tax burden on corporations and encourages investment in the domestic economy.

dividend preference | dividend-reinvestment plan

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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