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Any amount allowed as a deduction under section 591 (relating to deduction for dividends paid by mutual savings banks, etc.) shall not be treated as a dividend. (2) A dividend received from a regulated investment company shall be subject to the limitations prescribed in section 854.
No deduction shall be allowed under section 243 in respect of a dividend from a corporation which is a DISC or former DISC (as defined in section 992(a)) to the extent such dividend is paid out of the corporation’s accumulated DISC income or previously taxed income, or is a deemed distribution pursuant to section 995(b)(1).
§ 1.243-1 Deduction for dividends received by corporations. (a) (1) A corporation is allowed a deduction under section 243 for dividends received from a domestic corporation which is subject to taxation under Chapter 1 of the Internal Revenue Code of 1954. (2) Except as provided in section 243 (c) and in section 246, the deduction is:
The dividends received deduction (DRD) is a federal tax deduction in the United States that is given to certain corporations that get dividends from related entities.
The dividends received deduction (DRD) is a U.S. federal corporate tax deduction. It allows corporations to deduct a portion of the dividend income they receive from a related entity on...
Dividends-Received Deduction. A corporation can deduct a percentage of certain dividends received during its tax year. This section discusses the general rules that apply. The deduction is figured on Form 1120, Schedule C, or the applicable schedule of your income tax return.
The Dividends Received Deduction (DRD) is a tax break available to domestic C corporations (C-corps) that own stock in other domestic corporations and receive dividends from them. The DRD’s main purpose is to protect corporations from being subject to triple taxation.
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 it receives from other corporations in which it has an ownership stake.
Dividend income. A US corporation generally may deduct 50% of dividends received from other US corporations in determining taxable income. The dividends received deduction (DRD) is increased from 50% to 65% if the recipient of the dividend distribution owns at least 20% but less than 80% of the distributing corporation.
In the case of a corporation, there shall be allowed as a deduction an amount equal to the following percentages of the amount received as dividends from a domestic corporation which is subject to taxation under this chapter: (1) 50 percent, in the case of dividends other than dividends described in paragraph (2) or (3);