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arushi_13
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| Posted: 09 Jul 2009 at 13:06 | IP Logged
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Which of the following entities MUST include in GI 100% of dividends received from unrelated taxable domestic corp. in computing regular taxable income?
Ans: PSCs = Yes; PHCs = Yes.
Explanation:
Since the Q concerns GROSS INCOME, not taxable income no part of the dividend income would be offset by a DRD. Therefore, both PSCs and PHCs must include 100% of dividends received from unrelated taxable domestic corps. in GI.
My Q is how does it matter whether the Q asks dividend to be included in GI/Book Income or Taxable income as in the case of both PSCs and PHCs there is no DRD available. So whether its GI or Taxable Income 100% of the dividends will be included.
Am I missing something here? Please advise.
Thanks a lot.
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bryris
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| Posted: 09 Jul 2009 at 23:05 | IP Logged
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They are saying that you'd include the dividends into the gross income (not book income). Taxable income includes all income, then the deductions, right? They are asking only for the income side of the equation.
Sort of a stupid question really. Not yours!!!:), but whoever wrote it.
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arushi_13
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| Posted: 10 Jul 2009 at 00:47 | IP Logged
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Thanks bryris:)
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Topic: DRD
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