Asked by Randell Baley on Jun 10, 2024
Verified
Dividends are generally taxed at capital gains rates if they are made from the corporation's current earnings and profits or accumulated earnings and profits.
Capital Gains Rates
The tax rates applied to the profit made from selling an asset for more than its purchase price.
Dividends
Payments made by a corporation to its shareholders, usually as a distribution of profits.
- Acknowledge the essentials for reporting taxable interest and dividends, encompassing their treatment and deviations.
Verified Answer
KO
Krystal OsegueraJun 15, 2024
Final Answer :
True
Explanation :
Dividends are generally taxed at capital gains rates if they are made from either the corporation's current earnings and profits or accumulated earnings and profits. However, certain types of dividends may be taxed at different rates depending on the individual's tax situation.
Learning Objectives
- Acknowledge the essentials for reporting taxable interest and dividends, encompassing their treatment and deviations.
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