Dividend Received Deduction (DRD) Financial Glossary
What is it? Federal tax law allows a C corporation investing in the stock of other corporations to take a tax deduction for the dividend income received from other corporations. This tax treatment applies to dividends from preferred and convertible preferred stock in addition to common stock. The deduction is usually, but not always, 70 percent of the dividend amount received.Finance Term Definition Added By: Samuel
The Dividend Received Deduction (DRD) definition has been viewed 1042 Time(s)!
Send To Friends!
If you'd like to send the Dividend Received Deduction (DRD) definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -We hope you now understand the meaning of Dividend Received Deduction (DRD). If you need any more information on this term, please don't hesitate to contact us.
Other Similar Finance Terms:
Financial Term Money Market Account is A savings account which shares some of the characteristics of a money market fund. Like other savings accounts, money market accounts are insured by the Federal government. Money market accounts offer many of the same services as checking accounts although transactions may be somewhat more limited. They are very safe and highly liquid investments, but offer a lower interest rate than most other investments.Financial Term Probate is The process by which the will of someone who dies while living in England or Wales is validated.
Financial Term econometric models is Systems of mathematical formulas that attempt to represent the interaction of various macroeconomics variables. Some economists use these models to predict the alterations that will result from changes in one or more economic conditions. These models are sometimes used to predict interest rates. Rate forecasts made by econometric models are seldom correct.
Financial Term Municipal Bond is A bond issued by a state or a political subdivision, such as a county, city, town, or village. The term also designates bonds issued by state agencies and authorities. Interest payments from municipal bonds are generally free from federal income taxation.
Financial Term Purchase agreement is Same or similar to contract to purchase. See also contract to purchase under mortgage.