Deemed Dividend

Business, Legal & Accounting Glossary

Definition: Deemed Dividend

Quick Summary of Deemed Dividend

deemed dividend is a designated undistributed capital gain dividend.

Full Definition of Deemed Dividend

A company with a deemed dividend pays the taxes on the value of the dividend and the shareholders increase the cost basis of their shares. This is of benefit to the shareholders as it reduces the tax obligation upon the sale of the shares. Shareholders should receive a Form 2439 from their broker when a deemed dividend is issued.

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Modern Language Association (MLA):
Deemed Dividend. Payroll & Accounting Heaven Ltd. September 21, 2021
Chicago Manual of Style (CMS):
Deemed Dividend. Payroll & Accounting Heaven Ltd. (accessed: September 21, 2021).
American Psychological Association (APA):
Deemed Dividend. Retrieved September 21, 2021, from website:

Definition Sources

Definitions for Deemed Dividend are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th August, 2021 | 0 Views.