Also known as: dividends income · dividend · dividends
Written by attorneys · grounded in primary & secondary sources — see below
Income resulting from a dividend distribution by a corporation to its shareholders and subject to taxation.
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Dolores Diaz sues to pierce the veil of Dynamic Solutions after years of no cash distributions. The dominant shareholder siphoned funds while the corporation remained undercapitalized. The court weighs the consistent absence of dividend income as one factor showing the entity was a mere facade.
Davenport Pharmaceuticals board votes to increase authorized common shares. The sole purpose is to enable a pro rata share dividend to existing holders. No cash dividend income arises from the transaction itself.
Dixon Foods declares a share dividend under its articles. The board issues additional common shares pro rata and without consideration to all record holders. Recipients recognize no immediate taxable dividend income from the stock distribution.
Demetrius Douglas receives dividend income from shares acquired in a prior transaction. The court determines his basis in the property and how the income is characterized for tax purposes.
Diana Delgado trades shares while possessing material information about an impending dividend. Regulators examine whether her failure to disclose affected the market for the dividend income stream.
Destiny Davis holds shares in a steel company subject to a presidential seizure order. The order affects the corporation's ability to declare and pay dividend income to shareholders.
A specific devise of securities carries additional shares acquired through dividend reinvestment plans when those shares result directly from ownership of the described securities.
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A share dividend issued pro rata and without consideration generally does not produce immediate taxable dividend income to the recipient.
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Nonpayment of dividends is one factor courts consider under the totality of circumstances when deciding whether to pierce the corporate veil.
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…candidate’s authorized or affiliated committee making contributions, and any persons making loans, providing rebates, refunds, dividends, or interest or any other offset to operating expenditures in an aggregate amount over $200; the total amount of all disbursements, detailed by 12 different categories; the names of all…