Business, Legal & Accounting Glossary
deemed dividend is a designated undistributed capital gain 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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This glossary post was last updated: 4th August, 2021 | 0 Views.