A domestic corporation can receive a deduction for dividend income it receives from another domestic corporation.

Name: A domestic corporation can receive a deduction for dividend income it receives from another domestic corporation.
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According to the IRS, a domestic corporation can deduct dividends received from another domestic corporation if it owns 20% or more of the stock. This is known as the dividend received deduction (DRD) and is intended to prevent double taxation of corporate income.

A Domestic Corporation Can Receive a Deduction for Dividend Income