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iheartpeter
Major Contributor

Joined: 17 Mar 2009
Location: United States
Online Status: Offline
Posts: 274

Posted: 15 Jan 2010 at 11:15 \| IP Logged

I feel really dumb asking this, but dividend expense is not a deductible expense, right?

Thanks :)

__________________
BEC: 80 (May 2009)
AUD: 81 (August 2009)
REG: 90 (March 2010)
FAR: 80 (May 2010)

DONE!!

Carrie...On The Cheap

EAK5455
Regular
Regular

Joined: 08 Jan 2010
Location: United States
Online Status: Offline
Posts: 107

Posted: 15 Jan 2010 at 11:50 \| IP Logged

*deleted*

iheartpeter
Major Contributor

Joined: 17 Mar 2009
Location: United States
Online Status: Offline
Posts: 274

Posted: 15 Jan 2010 at 12:24 \| IP Logged

I just saw a question say they are not a deductible expense in determing taxable income....

__________________
BEC: 80 (May 2009)
AUD: 81 (August 2009)
REG: 90 (March 2010)
FAR: 80 (May 2010)

DONE!!

Carrie...On The Cheap

EAK5455
Regular
Regular

Joined: 08 Jan 2010
Location: United States
Online Status: Offline
Posts: 107

Posted: 15 Jan 2010 at 12:39 \| IP Logged

I think you're right and I'm wrong... sorry. The dividends
paid are treated as a reduction of CEP and AEP, which is
computed separately from ordinary income.

My apologies.

kj_nyc
Major Contributor

Joined: 05 Jun 2009
Location: United States
Online Status: Offline
Posts: 1145

Posted: 15 Jan 2010 at 13:11 \| IP Logged

Dividends paid are never deductible. However, part or all of dividends received are sometimes deductible (after first adding all the dividends received to income) via the DRD.

__________________
KJ, CPA licensed in New York
AUD - May 2009 - 99
FAR - July 2009 - 99
REG - Aug 2009 - 99
BEC - Oct 2009 - 93
License applied for Nov 2009, received Jan 2010

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