The Tax Cuts and Jobs Act changed the dividends received deduction for corporations.

Prior Law

Through December 31, 2017

Dividends received by a corporation from another corporation were 70% excluded from income for less than 20% owned domestic corporations and 80% excluded from income for more than 20% owned domestic corporations.

New Law

Effective for tax years beginning after December 31, 2017

The percentage excluded from income is decreased from 70% to 50%, and from 80% to 65%.

Commentary

The general impact of this will be to keep the tax on dividends received by a corporation substantially the same under current and prior law. The combination of lower exclusions and lower tax rates creates almost the same actual tax due on dividends received.

Print Friendly, PDF & Email
Matt Eckelberg
I joined the firm in 1997 as an intern and since have advanced to partner. I have thorough experience in both audit and tax, and provide these services to commercial entities, individuals and profit-sharing 401(k) plans.

Your Name (required)

Your Email (required)

Your Message

Are you human?


T: 800.658.9077
E: info@hawkinsashcpas.com

Locations

Your Name (required)

Your Email (required)

Your Message

Are you human?


T: 800.658.9077
E: info@hawkinsashcpas.com

Locations