How to Allocate E&P to Multiple Distributions (U.S. Corporate Tax)

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6.4 هزار بار بازدید - 4 سال پیش - When a company has positive
When a company has positive current E&P and positive accumulated E&P, any distributions are a dividend to the extent of current E&P (and then accumulated E&P).  But when there are multiple distributions during the year, and the total amount of the distributions exceeds the current E&P, you must allocate E&P to the various distributions as follows:

Step 1
Prorate current E&P to each distribution using this formula:  

current E&P * (amount of the distribution / total distributions) = current E&P allocated to the distribution

Step 2
Apply accumulated E&P to distributions in chronological order (i.e., start with the distribution that occurred earliest during the tax year)—
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4 سال پیش در تاریخ 1399/07/27 منتشر شده است.
6,493 بـار بازدید شده
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