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Why is dividend received from a 5% owned taxable domestic Corporationfully taxable to the Corporation that gets the dividend.


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#1 cpamonk

cpamonk

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Posted 21 August 2013 - 07:24 PM

Why is dividend received from a 5% owned taxable domestic Corporation fully taxable to the Corporation that gets the dividend.

 

I thought dividend received from a less than 20% owned Corpn is eligible for a 70% DRD (Dividend Received Deduction).

What am I missing here?