The dividends received deduction is meant to reduce the negative effects of the double tax on C corporation profits distributed to corporation shareholders as dividends. Certain dividends from Federal Home Loan Banks. Capital gain dividends from a regulated investment company or real estate investment trust, and return of capital distributions do not qualify. Certain limitations apply to regulated investment company dividends received.
Special rules apply to dividends received from foreign corporations.
Corporations exempt from tax. Effective for dividends paid or accrued after September 5, 1997. Partnership tax information. Tax information about Mortgage Interest Statements. Comprehensive tax information about Form 1099.