What Is a Deemed Dividend?

Answer

A deemed dividend is a tax policy used by publicly traded firms as a means of shifting tax responsibility from shareholders during the sale of company shares. Dividends are overheads made by a company to its shareholder members.
Q&A Related to "What Is a Deemed Dividend?"
A deemed dividend pays the taxes, also called capital gains taxes, on a shareholder's percentage of company profits,. In turn, the shareholder increases the cost basis of his existing
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In the accounting world Income is synonymous with revenue. I.E. any money you earned. A dividend is money paid back to the shareholders if the company makes a net profit after all
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While dividends are the only direct income (money paid out), the total return of holding, a stock is the dividend plus the capital gain of the stock price. Dividend-paying stocks
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a dividend is the number that is divided by the divisor
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Ask.com Answer for: what is a deemed dividend
What Is a Deemed Dividend?
A deemed dividend is a tax instrument used by publicly traded corporations as a means of shifting tax liability from shareholders during the sale of company stock. The IRS also permits the use of a deemed dividend as a means of spreading out investor tax... More »
Difficulty: Easy
Source: www.ehow.com
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