[Mars2010]

Regarding the limitation of DRD,

to deduct the lesser of 70% or 80% of dividends received or taxable income before dividends deduction.

And to deduct the amount that will create or increase the NOL.

This does not apply on the 100% deduction ?

Thanks.

[noodles]

I'm confused about this as well. Anyone?

[smp73]

Do you have the NINJA notes/audio? I can't remember off the top of my head but I do remember it was the NINJA stuff that helped me understand that…

NYS CPA License # 113563
CIA: Done as of 2/15/14

Training for a half marathon post studying!

[futureCPA12]

Okay I'll chime in on this one guys. So basically if you can qualify for 100% DRD that means you own 80% of the company which ALSO means that you consolidate tax wise. Thus, if you do qualify for the 100% DRD, it means that the entire dividend received from that company is not taxable because they are in fact consolidated with one another.

[Anonymous]

As futureCPA12 said, there is no Taxable Income limitation when a consolidated return is filed since the dividend amount is not included in gross income.

[Author]

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