Because of the taxable income limitation, no dividends received deduction is allowed if a corporation has an NOL for the current taxable year.

Question

Quizplus · Accepted Answer

The dividends received deduction (DRD) is allowed even if a corporation has a net operating loss (NOL) for the current taxable year. The limitation affects the amount of DRD that can be used to reduce taxable income, not the allowance of the deduction itself.

Because of the Taxable Income Limitation, No Dividends Received Deduction