While dividends in kind are treated as a taxable dividend to the recipient shareholders, they have no tax consequences for the corporation declaring the dividend.

Name: While dividends in kind are treated as a taxable dividend to the recipient shareholders, they have no tax consequences for the corporation declaring the dividend.
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Question

Quizplus · Accepted Answer

Dividends in kind may have tax consequences for the corporation declaring the dividend, such as capital gains tax on the transfer of assets to the recipient shareholders.

While Dividends in Kind Are Treated as a Taxable Dividend