I have a c corp that owns stock of other c corps. How are the dividends tax that my c corp receives. Do I get a break because they have already been taxed once?
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All income within a corp is taxed the same.
You’ve discovered the ruse with dividends, whether they’re paid to a corp or an individual — they’re taxed twice, first as income in the corp and then as income when received on the other end.
Unlike individuals who pay tax on dividends received, your C-corporation does get a break from dividends received from other C-corporations. The tax break is called the dividends received deduction.
The amount of the deduction depends on the level of ownership the receiving corporation has in the sending corporation. The deduction varies from 70 percent to 100 percent (subject to some restrictions on the earnings of the corporation).
Using the DRD the receiving corporation may pay little or no income tax on dividends received. Any amount that is taxed is taxed as ordinary income.