[Anonymous]

This is what CPAexcel and Investopedia say about DRD:

If a company owns less than 20% of another company, it is able to deduct 70% of the dividends it receives. If the company owns more than 20% but less than 80% of the company paying the dividend, it is able to deduct 80% of the dividend received. If it owns more than 80% of the dividend-paying company, it is allowed to deduct 100% of the dividends it receives.

Soooooooooo, what is the DRD if you own exactly 80% of the company?

[vanadium3]

80 because it says “greater than.” But focus more on stuff to do with NOL.

Don't you love tax law? A group of people one day decided to form government and tax people…and you eventually get DRD. C'mon..

CPA

[vanadium3]

80 because it says “greater than.” But focus more on stuff to do with NOL.

Don't you love tax law? A group of people one day decided to form government and tax people…and you eventually get DRD. C'mon..

CPA

[Anonymous]

Also, don't forget to adjust the DRD to % of TI if DRD will create a loss…

[Anonymous]

Also, don't forget to adjust the DRD to % of TI if DRD will create a loss…

[NYCaccountant]

If you own 80%, the dividends will be eliminated when the companies consolidate. You can't pay yourself a dividend.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[NYCaccountant]

If you own 80%, the dividends will be eliminated when the companies consolidate. You can't pay yourself a dividend.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[Author]

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