korean dating agency - A liquidating dividend is


An expanded version of the same can also be found in Section 8 of Revenue Regulations 6-2008 whereby it is clarified that the capital gain or loss derived by stockholders in receiving liquidating dividends are subject to regular income-tax rates.

Viewed from the other perspective, however, the framing of the various statutory provisions in our tax code relating to taxation of sale of assets may provoke controversy as to the proper theory upon which to proceed in taxing stockholders on the receipt of liquidating distribution.

Before selling, you should consider the financial consequences of liquidating.

a liquidating dividend is-62a liquidating dividend is-36

Verifying your total number of shares may be necessary to account for additional shares added to your portfolio through a dividend reinvestment program or other type of special dividend. If you are in the position to pick and choose which stocks to liquidate, factor in your overall tax situation, so that you don't trigger a large tax bill.

Stock shares sold at a gain could be subject to the capital gains tax.

For instance, in the recent Court of Tax Appeals (CTA) En Banc Case (1702), the Bureau of Internal Revenue (BIR) argued that the capital gains tax is a final tax on the presumed gain from the disposition of a property in exchange for shares of stock pursuant to Section 27 (D)(5) of our tax code.

In invoking this provision, one can assume that the BIR is looking from the viewpoint of the stockholder whereby it has all the characteristic of an outright sale.

Only dividends paid out of the relevant year net income or any accumulated earnings available since acquisition of the block of stock are recognized as ordinary dividend and the rest are recognized as liquidating dividends.