If a corporation owns less than 20% of the stock of the distributing corporation,the dividends-received deduction is not allowed for the recipient corporation.

Name: If a corporation owns less than 20% of the stock of the distributing corporation,the dividends-received deduction is not allowed for the recipient corporation.
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The dividends-received deduction is allowed for corporations owning less than 20% of the distributing corporation, typically at a rate of 50%.

If a Corporation Owns Less Than 20% of the Stock