Liquidating dividends and tax treatment vba code screenupdating
Because the dividends are totally paid out of relevant year net income, they are all ordinary dividends and must be recognized as income by Company A.
The journal entry in the first year would be: In the third year and fourth year, dividends declared exceeded the available income.
Liquidating dividends are dividends paid in excess of a company’s accumulated earnings.
They are meant to fully or partially liquidate the company.
Also keep the forms you receive showing your investment income (Forms 1099-INT, Interest Income, and 1099-DIV, Dividends and Distributions, for example) as an important part of your records. The NIIT is a 3.8% tax on the lesser of your net investment income or the amount of your modified adjusted gross income (MAGI) that is over a threshold amount based on your filing status.Section 1031 was amended to apply only to the exchange of real property for real property of a like kind if both the real property disposed of by you and the real property received by you are held for productive use in a trade or business or for investment.