Tax FAQ
 

What Is The Tax Rate On Dividends Received By C Corps?

Question by Banker | Posted in United States

I have a c corp that owns stockpile of other c corps. How are the dividends tax that my c corp receives. Do I get a break because they have already been taxed once?

Thanks

Answer: Incompatible with individuals who pay tax on dividends received, your C-corporation does get a break from dividends received from other C-corporations. The tax away is called the dividends received deduction.

The amount of the deduction depends on the level of ownership the receiving corporation has in the sending corporation. The subtraction varies from 70 percent to 100 percent (subject to some restrictions on the earnings of the corporation).

Using the DRD the receiving
 
 

On What Tax Form Are Qualified Dividends Taxed?

Question by Greg | Posted in United States

I identify they have a preferential rate, but the 1040 instructions say to include qual. dividends in with ordinary dividends on railway 9a. Doesn't this include qualified dividend income with the rest of taxable profits?
Where, in the calculation of the tax on page 2 of the 2040, are qualified dividends taxed at their lower rate?

Answer: Traditional dividends are taxed as ordinary income, they're just added on to the rest of your income. Fit dividends represent a payout of capital gains and are taxed as long-term majuscule gains. The rate for capital gains depends upon your marginal tax rate. If your borderline rate is higher than 15% the rate is 15%. If your marginal rate is 15% or less, the berate is 0%.

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Should Washington Tax Capital Gains From Stock "trading" Up The Wazzou, And Reduce Taxes On Dividends To Zip?

Question by Justanotherguy | Posted in United States

Range trading does nothing to improve a company, none of the money goes to the factories or warehouses. Banal trading is just a Ponzi scheme, aways looking for a bigger cat's-paw than you to buy your stock.

Dividends indicate the company makes a profit and shares that profit with the shareholders.

So tax the top gains on stocks 70-80%, paid out dividends are tax free.

What say you?

Answer: I conform in principle if not with the tax rates that you propose - not so much because of the benefit to the companies, but because it would encourage people to Venture instead of trying to "day trade." Companies would be encouraged to pay dividends rather than of engaging in stock price "pumping" and silly forerunner buy backs.


Unfortunately, "the system" (stock exchanges, brokerages, investment banks, etc.) would pressure group against any

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Is Withholding Tax On Dividends Paid To An American By A Canadian Company Subject To Refund?

Question by SmashBottom | Posted in United States

And since the American is living in the US, is it sent to the US authority? Or, is it paid to the Canadian government?

And if it is in an IRA does that mean that it qualifies as a distribution from your IRA and is succeeding to cause you to pay additional tax on the tax withheld?

God help me, someone!

Answer: There is a tax concordat with Canada (among other countries). Since gas/oil royalty trusts currently do not pay income tax (until 2010), 15% of their distributions (treated like dividends) are withheld by the Canadian gov't.

If it was in a taxable account, you would get a overseas tax credit for the 15% Canadian withholding against any US tax due, which would typically cancel out the 15% US tax on qualfied dividends. But in an IRA, no US tax is due that year on the dividends (assuming

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Is There A Tally Of How Many Jobs Died Thanks To The Low Tax Rates On Capital Gains And Dividends?

Question by Matthew D | Posted in Politics

How many jobs perished due to 'solutions' stemming from the cuts on capitals gains and dividends taxes?

Answer: Of line there is not, it's not as simple to say a job was lost because of one cause over another as multiple causes are the combining factor

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Your Money Q&A: Can I take out dividends from my Roth tax-free?

by Harriet Brackey

The blended command of is that someone who converts an IRA to a Roth IRA must sit tight five years or until age 59 and a half to pull out the monied and circumvent a 10 percent tax amercement. Can I take out the dividends without incarceration or taxes. The commonly on this one is you can get back what you put in, tax-disburden, during the first five years. Rick Shapiro, a certified monetary planner and CPA at Epstein & Shapiro in Fort Lauderdale, says the answers are no, it depends and no. For your first point, the critical truly is your age. I have three questions: Do I exigency to on the back burner serve five years before fascinating any moolah out or will I have to pay a discipline. But you’d owe tax if you took out anything more. About a year ago, I converted an Singular Retirement Account into a Roth IRA. To replication the move suspicion on a under discussion, Shapiro expected you’d made only deductible contributions to your imaginative IRA....

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