The dividends received deduction is added back to taxable income to determine E & P.

Name: The dividends received deduction is added back to taxable income to determine E & P.
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The dividends received deduction is a deduction that reduces taxable income for certain dividends received by corporations. However, when calculating earnings and profits (E&P), this deduction must be added back to taxable income as it is not considered a true expense for E&P purposes.

The Dividends Received Deduction Is Added Back to Taxable Income