This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Leo will have a taxable dividend of $10,000 and a non-taxable return of capital of $2,000. This assumes Leo has some cost basis in his stock. Distributions in excess of earnings and profits are non-taxable and reduce the recipients basis in the stock of the corporation....
View Full Document
This note was uploaded on 09/16/2011 for the course ACCT 145 taught by Professor Eric during the Spring '11 term at Palm Beach Community College.
- Spring '11