Which of the following statements is true?
A)Dividends paid by a corporation are deductible by that corporation and are a form of property income for the recipient.
B)Dividends paid by a corporation are deductible by that corporation and are a form of business income for the recipient.
C)Dividends paid by a corporation are not deductible by that corporation and are a form of business income for the recipient.
D)Dividends paid by a corporation are not deductible by that corporation and are a form of property income for the recipient.

Question

Quizplus · Accepted Answer

Dividends paid by a corporation are not deductible by that corporation and are a form of property income for the recipient. This means that the corporation cannot deduct dividends paid to its shareholders as an expense on its tax return. Instead, dividends received by shareholders are taxed as property income on their individual tax returns.

Which of the Following Statements Is True