Dividends Received Deduction (DRD)

Dividends Received Deduction (DRD),

Dividends Received Deduction (DRD) Meanings:

  1. Dividend Receipt Deduction (DRD) is a federal tax deduction for some companies in the United States that receive profits from tax affiliates. The profit that the company can get from income tax depends on the company's participation in the dividend business. However, there are standards that companies must meet to qualify for a DRD.

    • Dividend Receipts DRD (DRD) applies to some companies that receive profits from affiliates and minimize the potential consequences of imposing a triple tax.
    • There are many types of deductions that can be made, ranging from a 50% reduction in profits to a 100% reduction.
    • Corporate shareholders are eligible for DRD. There are many rules to follow.
    • For example, no company can deduct profits from real estate investment funds (REITs) or capitalized dividends from regulated investment companies.
    • Profits from domestic companies are subject to different holding rules as compared to remittances received from foreign companies.

Literal Meanings of Dividends Received Deduction (DRD)

Dividends:

Meanings of Dividends:
  1. A company pays its shareholders regularly (usually annually) with profits (or reserves).

  2. Number to divide by another number.

Sentences of Dividends
  1. Tax exemption on dividend payments from pension funds has been abolished.

  2. Numeric symbol must be more than one.

Synonyms of Dividends

emolument, interest, yield, benefit, takings, income, proceeds, earnings, advantage, winnings, reward, return, percentage, dividend, profit, receipts

Received:

Meanings of Received:
  1. Widely accepted as dictatorial or just.

Sentences of Received
  1. Accepted superstitions and wisdom about the country's past

Synonyms of Received

unoriginal, usual, derivative, proper, correct, traditional, traditionalist, common, standard, recognized, received, popular, canonical, prevalent, regular, customary, doctrinal, conservative, unheretical, conventional, authorized, accepted, well established, conformist, authoritative

Deduction:

Meanings of Deduction:
  1. More or less

  2. Completion of a particular case with respect to a law or general rule.

Sentences of Deduction
  1. Shares are tax-free

  2. Detectives must find the killer

Synonyms of Deduction

belief, withdrawal, docking, presumption, thesis, subtraction, conclusion, discounting, suspicion, conviction, assumption, hypothesis, supposition, inference, removal, taking off, debit, abstraction, taking away