C-Corporations Flashcards
1
Q
Foreign dividend received deduction qualifications:
A
100% dividend received deduction if:
1. Ownership exceeds 10%
2. Stock owned for more than 365 days
2
Q
Dividends Received Deduction (DRD)
A
DRD only for domestic corporations
Step 1:
Ownership: Less than 20% = 50% deduction
20-80% = 65%
Greater than 80% = 10%
Step 2:
Taxable income x deduction percentage
Step 3:
DRD is the lesser of step 1 or 2, unless deducting the amount arrived in step 1 results in a NOL. (Then use step 1)
