Tax- Chapter 5 Part 2 Presentation final
Download as PPTX, PDF0 likes480 views
This document discusses the tax treatment of corporate distributions to shareholders. It reviews how earnings and profits (E&P) determine whether distributions are treated as dividends or returns of capital. Current E&P is used first to treat distributions as dividends, then accumulated E&P if needed. Qualified dividends received by individuals are taxed at preferential rates. Property distributions are also discussed, including their tax impact on both the distributing corporation and receiving shareholders. The corporation may recognize gain or loss on property distributions depending on basis, while shareholders treat distributions as dividends or returns of capital based on E&P.
1 of 14
Download to read offline
Recommended
What is Dividend
What is DividendSnehaSethi6
Ìý
#WhatisDividend
Hello, everyone, this presentation concept is a dividend in the share market,many people asking me what is a dividend and what is dividend investing and how to choose dividend stocks.The dividend shares money and this money share with shareholder dividend are very important for investment point of view and dividend is a very good source for judge good stocks in share market and in this market. I hope this video helps you good luck.
This presentation covers the basics of Dividend, Ex-Dividend, Record Date, Ex-Date.
Dividends are when a company distributes a portion of its profits to its shareholders. dividend
dividendSonali Kukreja
Ìý
This document discusses dividends and dividend policy. It defines dividends as the portion of a company's profits distributed to shareholders. Dividend policy determines what percentage of earnings are paid out to shareholders versus being reinvested in the company. The document outlines factors considered in determining dividends such as profit levels, liquid assets, and future needs. It also discusses statutory provisions around dividend payments, interim dividends declared by directors, and goals of a clear long-term dividend policy that avoids frequent changes.Types and forms of dividend
Types and forms of dividendHářşhîťh Harsha
Ìý
A dividend is a distribution of a company's earnings to its shareholders, typically done through cash payments or distributing other property. The most common type is a cash dividend, where shareholders are paid in cash per share held. Other types include bonus shares (stock dividends), share repurchases, property dividends (payment made in assets), scrip dividends (promissory notes), and liquidating dividends (return of original capital). For cash dividends, companies must have positive retained earnings and sufficient cash reserves. Bonus shares increase the number of shares without increasing capital. Share repurchases return cash to investors by reducing outstanding shares.Forms of dividend
Forms of dividendRenjini2014
Ìý
Companies typically pay dividends to shareholders in cash. Sometimes they supplement cash dividends with bonus shares or stock dividends. When paying cash dividends, companies must have sufficient cash reserves. If reserves are low, companies may need to borrow funds. Companies that follow a stable dividend policy must prepare cash budgets to ensure they can consistently pay dividends. Bonus shares increase the number of outstanding shares but do not affect total shareholder wealth. They provide tax benefits to shareholders and allow companies to conserve cash. A share split increases the number of outstanding shares by reducing the par value but does not change total shareholder equity or wealth.Divedend
DivedendHariprasad S Kannan
Ìý
This document discusses dividend policy and the factors that affect it. It defines dividends as payments made by corporations to shareholders from profits. There are different types of dividends including cash dividends, stock dividends, scrip dividends, property dividends, and bond dividends. Factors that influence a company's dividend policy include the state of the economy, legal restrictions, tax policy, shareholders' desires, the company's financial needs and stability of earnings, management's control desires, and liquidity position.S corporation vs. C corporation
S corporation vs. C corporationButcherJoseph & Co.
Ìý
When a business owner decides to sell the company, there are different scenarios to consider ensuring the sale benefits the seller as much as possible. It’s imperative that the owner should understand the tax implications and how they relate to the company’s corporate structure. When starting a business or changing your business structure, one of the most common options business owners evaluate is whether to form an S corporation or C corporation. These are the two most common ways to incorporate, and the choice really depends on your business goals. 4 steps to assess dividends vs wage for sr&ed gain
4 steps to assess dividends vs wage for sr&ed gainMaurice Goulet
Ìý
SR&ED funds can go direct to Investigators and does not interfere with other fund sources or have ethics issues.
We have crafted strategies to maximize the dollars realized,minimize the effort of assembling claims and avoid unnecessary CRA headaches. It should also be realized that SR&ED claims will interact with both corporate and personal taxes. Clients care about their after-tax position, as well as cash flow, retirement needs and estate planning. Annual SR&ED rebates can be significant, but need to harmonize with other strategies to give the greatest benefit. Goulet Associates strives to supply one piece of the larger puzzle.Section 1042 Capital Gains Tax Deferral
Section 1042 Capital Gains Tax DeferralButcherJoseph & Co.
Ìý
The benefits from an ESOP can provide meaningful value to the selling shareholder(s), the company and the employees participating in the Employee Stock Ownership Plan (ESOP). Tax issues should not drive the decision to sell a business, but once the decision is made, the tax benefits of the ESOP make it a viable alternative to selling to a strategic buyer. This presentation takes a close look at the IRC section 1042 capital gains tax deferral that applies when selling a business to an ESOP.Diluted earnings per share
Diluted earnings per shareTimothy Atayde
Ìý
This document discusses the calculation of diluted earnings per share (EPS) which takes into account potential ordinary shares that could dilute basic EPS. Potential ordinary shares include convertible bonds, convertible preference shares, and share options/warrants. Diluted EPS is calculated using an "as if" scenario where these instruments are converted/exercised. Dilution occurs when diluted EPS is lower than basic EPS. The document provides examples calculating basic and diluted EPS for a company with convertible bonds outstanding and bonds that were converted during the period.Dividend Types
Dividend TypesGayathri Vijay
Ìý
dividend types,shareholding,finance management,dividend per share,cash dividend,scrip dividend,stock dividend,property dividend.Chapter 14 Dividends
Chapter 14 DividendsAlamgir Alwani
Ìý
The document discusses dividend policy and its implications. It covers several key points:
1) Dividends are discretionary decisions made by the board of directors that balance returning cash to shareholders with retaining earnings for reinvestment.
2) There is a controversy around whether dividend policy impacts stock price, with some arguing it is irrelevant due to offsetting factors.
3) Other theories explore preferences for dividends versus capital gains and how signaling effects can influence perceptions.Tax Efficient Investing For Life
Tax Efficient Investing For Lifeguesta5e2f9
Ìý
This document discusses tax efficient investing using Investors Group Corporate Class Inc. funds and Allegro Corporate Class Portfolios. It notes that these products allow investing outside of registered accounts while avoiding tax liabilities when rebalancing. A case study shows how using Corporate Class funds rather than traditional non-registered investments can lead to over $60,000 more in gains over 25 years due to tax deferral. It also describes using Series T portfolios for tax efficient monthly payouts through return of capital distributions.Earning Per Share
Earning Per ShareJinu Joseph
Ìý
Earnings per share (EPS) is used by investors and analysts to assess a company's performance over time and compare it to other companies. Basic EPS is calculated by taking net profit minus preferred dividends and dividing it by the number of common shares outstanding. Diluted EPS accounts for all convertible securities like options, warrants, and preferred shares that could be converted to common stock, which would result in more shares outstanding and a lower EPS. Calculating diluted EPS involves determining the equivalent number of common shares those convertible securities represent and adjusting the net profit and share count accordingly.Top 10 Tax Issues for Startup Companies
Top 10 Tax Issues for Startup CompaniesRoger Royse
Ìý
The document discusses tax issues related to startup companies. It begins by covering the choice of entity for a startup, comparing an LLC, S corporation, and C corporation. It notes tax implications of each including taxation of earnings, eligibility requirements for owners, and taxation of transfers. The document then discusses specific issues related to startups including section 305 regulations on convertible preferred stock, taxation of stock rights like convertible debt and warrants, and dynamic split models for allocating equity.Chapter 12 presenatation
Chapter 12 presenatationdphil002
Ìý
The document provides information about electing S corporation status for Cane, Inc. It discusses:
- Cane, Inc. has been a C corporation with less than $100,000 annual income, but expects losses in the next few years due to imports
- Electing S corporation status could allow deducting anticipated losses and provide tax benefits
- Requirements for S corporation eligibility include being a domestic corporation with one class of stock and 100 or fewer shareholders
- Cane, Inc. could elect S status if it has identical voting and non-voting stock and shareholders consent before the deadlineAs 20
As 20AMG, Inc.
Ìý
This document discusses the calculation and presentation of earnings per share (EPS) according to Accounting Standard 20. It defines EPS as a financial ratio that shows earnings available to each equity shareholder. It discusses the applicability of EPS reporting and the types of EPS - basic and diluted. The key steps for calculating basic EPS are determining net profit attributable to equity shareholders and calculating the weighted average number of outstanding shares. Right shares must be adjusted for in the weighted average calculation. Diluted EPS factors in additional shares that could be issued from convertible instruments.Dividends policy
Dividends policyOnline
Ìý
The document discusses different types of payouts companies can use to distribute cash to shareholders, including regular cash dividends, stock dividends, dividends in kind, and stock buybacks. It also covers the standard procedure for paying cash dividends, including declaration date, ex-dividend date, record date, and payment date. Additionally, it discusses the theory that dividend policy is irrelevant to the value of the firm since investors can create their own income streams through stock transactions.Corporate Windups
Corporate Windupsmeijosamurai
Ìý
The document discusses various tax implications related to corporate distributions, windings-up, and sales. It covers topics like the tax-free and tax-paid components of corporate surplus, tax effects of distributing surplus through dividends or asset sales, and options available when selling a corporation, including analyzing the sale of assets versus shares. Key terms discussed include paid-up capital (PUC), adjusted cost base (ACB), capital dividend account (CDA), and deemed dividends. Examples are provided to illustrate how to calculate CDA balances and the tax components of distributions in a winding-up. Factors for different potential purchasers are also outlined.Fm retained earnings
Fm retained earningsVivek Prajapati
Ìý
Retained earnings refers to the portion of a company's net income that is retained by the company rather than distributed to shareholders as dividends. Retained earnings accumulate over time and represent undistributed profits that have been reinvested in the business to fund operations, future growth, or pay down debt. A company calculates its retained earnings for a period by taking the previous period's retained earnings balance, adding net income and subtracting any dividends paid out.Aswathy s
Aswathy sSidharth SiD
Ìý
This document discusses dividend policy and its objectives and factors. It defines dividend policy as a company's decision regarding distributing residual earnings to shareholders. The primary objective is maximizing shareholder wealth. While dividends increase share prices, they also reduce retained earnings available for new projects.
The objectives of dividend policy include maximizing shareholder wealth, ensuring sufficient retained earnings to finance future prospects, and maintaining a stable dividend rate. Factors that affect dividend policy include legal requirements, the company's liquidity, expected returns on reinvestment, earnings stability, shareholders' tax situations, and access to capital markets. Both internal factors like earnings stability and external factors like taxation policy influence a company's dividend policy.Dividend Policy and Procedure
Dividend Policy and ProcedureSundar B N
Ìý
This ppt is prepared to make familiar with the dividend policy which includes Types of Dividend policy, Procedure for declaring dividend, Why do companies declare dividendInterest of capital of partners appropriation of profit and loss
Interest of capital of partners appropriation of profit and lossTutors On Net
Ìý
Interest on Capital is entitled to partners only when it is specified
in the Partnership Deed. The proposal for offering the interest on capital
is to recompense the opportunity cost underwent by the partners by not
endowing the money elsewhere in securities with modest or no hazard.Types of dividents
Types of dividentsKaila Premchand
Ìý
Dividends can be classified in several ways:
1. Based on the source of funds, dividends are either profit dividends paid from earnings or liquidation dividends paid from capital.
2. Based on the type of shares, dividends are either equity dividends paid to ordinary shareholders or preference dividends paid to preferred shareholders.
3. Based on the payment method, dividends can be paid in cash, stock, bonds, property, or a combination through composite dividends.Partnership
Partnershipharrysmarty110
Ìý
The document discusses the accounting treatment for goodwill in partnerships when there are changes to the partnership. It provides information on calculating goodwill when a new partner is admitted, an existing partner retires, or the profit sharing ratios change. Goodwill is the excess of the purchase price over the fair value of the identifiable net assets acquired in a business combination. In partnerships, goodwill must be revalued and allocated among the partners' capital accounts for any changes to the partnership structure or profit sharing agreements.Webinar ºÝºÝߣs: Tax Considerations for Debt-Financed Distributions from Partn...
Webinar ºÝºÝߣs: Tax Considerations for Debt-Financed Distributions from Partn...MHM (Mayer Hoffman McCann P.C.)
Ìý
Original air date: Dec. 14, 2017
Recording available at http://www.mhmcpa.com
Partnerships often hear the calling from private equity fund partners to monetize a portion of the value they own, even though they are not yet ready to deploy their exit strategy. Partnerships offer tremendous flexibility to accomplish this objective in a tax-efficient manner using debt-financed distributions. However, these transactions leave potential traps for the unwary.
In this webcast, we will provide comprehensive examples of the tax consequences of debt-financed distributions, from the moment they are made through typical subsequent events that affect their tax results.Earning per share AS- 20
Earning per share AS- 20VIKAS DUBEY
Ìý
This presentation is on Accounting Standard - 20 Earnings per share issued by Institute of Chartered Accountants of India.
Dividend Policy Report
Dividend Policy ReportChristine Manongsong
Ìý
This document discusses dividend policy and various related concepts. It defines dividends as distributions from company profits to shareholders. A dividend policy determines how much a company will pay out to shareholders. Dividend dates include the record, declaration, ex-dividend, and payment dates. The types of dividends covered are cash, property, liability, and stock dividends. The document also discusses different dividend policies and factors that affect dividend amounts.Dividend Decision 03
Dividend Decision 03rajeevgupta
Ìý
The document discusses the dividend decision as one of the four major finance decisions a firm must make. It summarizes the dividend process and different types of dividend actions like bonus shares, stock splits, and share buybacks. It also discusses the impact of dividends on shareholders in terms of taxes. The document then discusses the dividend irrelevance theory proposed by Miller and Modigliani that the value of a firm is not affected by whether it pays dividends or retains earnings. It provides an example to illustrate how the value of the firm remains the same under both scenarios.Survey 5e ch8_lecture
Survey 5e ch8_lecturecamhenlin
Ìý
This chapter discusses how businesses finance their operations through debt or equity financing. It describes key liabilities like current liabilities, notes payable, taxes, and contingencies. It also explains how businesses issue bonds and stock to raise capital. The chapter covers accounting for dividends, stock splits, and their impact on financial statements. It analyzes how debt versus equity financing affects earnings per share.Lec8 dividend policy
Lec8 dividend policyUniversity of Balochistan
Ìý
dividend policy, irrelevance of dividend, relevance of dividend, factors effecting the dividend policy, stock split, stock reverse, stock dividend, treasury stock, stable and fixed dividend policiesMore Related Content
What's hot (20)
Diluted earnings per share
Diluted earnings per shareTimothy Atayde
Ìý
This document discusses the calculation of diluted earnings per share (EPS) which takes into account potential ordinary shares that could dilute basic EPS. Potential ordinary shares include convertible bonds, convertible preference shares, and share options/warrants. Diluted EPS is calculated using an "as if" scenario where these instruments are converted/exercised. Dilution occurs when diluted EPS is lower than basic EPS. The document provides examples calculating basic and diluted EPS for a company with convertible bonds outstanding and bonds that were converted during the period.Dividend Types
Dividend TypesGayathri Vijay
Ìý
dividend types,shareholding,finance management,dividend per share,cash dividend,scrip dividend,stock dividend,property dividend.Chapter 14 Dividends
Chapter 14 DividendsAlamgir Alwani
Ìý
The document discusses dividend policy and its implications. It covers several key points:
1) Dividends are discretionary decisions made by the board of directors that balance returning cash to shareholders with retaining earnings for reinvestment.
2) There is a controversy around whether dividend policy impacts stock price, with some arguing it is irrelevant due to offsetting factors.
3) Other theories explore preferences for dividends versus capital gains and how signaling effects can influence perceptions.Tax Efficient Investing For Life
Tax Efficient Investing For Lifeguesta5e2f9
Ìý
This document discusses tax efficient investing using Investors Group Corporate Class Inc. funds and Allegro Corporate Class Portfolios. It notes that these products allow investing outside of registered accounts while avoiding tax liabilities when rebalancing. A case study shows how using Corporate Class funds rather than traditional non-registered investments can lead to over $60,000 more in gains over 25 years due to tax deferral. It also describes using Series T portfolios for tax efficient monthly payouts through return of capital distributions.Earning Per Share
Earning Per ShareJinu Joseph
Ìý
Earnings per share (EPS) is used by investors and analysts to assess a company's performance over time and compare it to other companies. Basic EPS is calculated by taking net profit minus preferred dividends and dividing it by the number of common shares outstanding. Diluted EPS accounts for all convertible securities like options, warrants, and preferred shares that could be converted to common stock, which would result in more shares outstanding and a lower EPS. Calculating diluted EPS involves determining the equivalent number of common shares those convertible securities represent and adjusting the net profit and share count accordingly.Top 10 Tax Issues for Startup Companies
Top 10 Tax Issues for Startup CompaniesRoger Royse
Ìý
The document discusses tax issues related to startup companies. It begins by covering the choice of entity for a startup, comparing an LLC, S corporation, and C corporation. It notes tax implications of each including taxation of earnings, eligibility requirements for owners, and taxation of transfers. The document then discusses specific issues related to startups including section 305 regulations on convertible preferred stock, taxation of stock rights like convertible debt and warrants, and dynamic split models for allocating equity.Chapter 12 presenatation
Chapter 12 presenatationdphil002
Ìý
The document provides information about electing S corporation status for Cane, Inc. It discusses:
- Cane, Inc. has been a C corporation with less than $100,000 annual income, but expects losses in the next few years due to imports
- Electing S corporation status could allow deducting anticipated losses and provide tax benefits
- Requirements for S corporation eligibility include being a domestic corporation with one class of stock and 100 or fewer shareholders
- Cane, Inc. could elect S status if it has identical voting and non-voting stock and shareholders consent before the deadlineAs 20
As 20AMG, Inc.
Ìý
This document discusses the calculation and presentation of earnings per share (EPS) according to Accounting Standard 20. It defines EPS as a financial ratio that shows earnings available to each equity shareholder. It discusses the applicability of EPS reporting and the types of EPS - basic and diluted. The key steps for calculating basic EPS are determining net profit attributable to equity shareholders and calculating the weighted average number of outstanding shares. Right shares must be adjusted for in the weighted average calculation. Diluted EPS factors in additional shares that could be issued from convertible instruments.Dividends policy
Dividends policyOnline
Ìý
The document discusses different types of payouts companies can use to distribute cash to shareholders, including regular cash dividends, stock dividends, dividends in kind, and stock buybacks. It also covers the standard procedure for paying cash dividends, including declaration date, ex-dividend date, record date, and payment date. Additionally, it discusses the theory that dividend policy is irrelevant to the value of the firm since investors can create their own income streams through stock transactions.Corporate Windups
Corporate Windupsmeijosamurai
Ìý
The document discusses various tax implications related to corporate distributions, windings-up, and sales. It covers topics like the tax-free and tax-paid components of corporate surplus, tax effects of distributing surplus through dividends or asset sales, and options available when selling a corporation, including analyzing the sale of assets versus shares. Key terms discussed include paid-up capital (PUC), adjusted cost base (ACB), capital dividend account (CDA), and deemed dividends. Examples are provided to illustrate how to calculate CDA balances and the tax components of distributions in a winding-up. Factors for different potential purchasers are also outlined.Fm retained earnings
Fm retained earningsVivek Prajapati
Ìý
Retained earnings refers to the portion of a company's net income that is retained by the company rather than distributed to shareholders as dividends. Retained earnings accumulate over time and represent undistributed profits that have been reinvested in the business to fund operations, future growth, or pay down debt. A company calculates its retained earnings for a period by taking the previous period's retained earnings balance, adding net income and subtracting any dividends paid out.Aswathy s
Aswathy sSidharth SiD
Ìý
This document discusses dividend policy and its objectives and factors. It defines dividend policy as a company's decision regarding distributing residual earnings to shareholders. The primary objective is maximizing shareholder wealth. While dividends increase share prices, they also reduce retained earnings available for new projects.
The objectives of dividend policy include maximizing shareholder wealth, ensuring sufficient retained earnings to finance future prospects, and maintaining a stable dividend rate. Factors that affect dividend policy include legal requirements, the company's liquidity, expected returns on reinvestment, earnings stability, shareholders' tax situations, and access to capital markets. Both internal factors like earnings stability and external factors like taxation policy influence a company's dividend policy.Dividend Policy and Procedure
Dividend Policy and ProcedureSundar B N
Ìý
This ppt is prepared to make familiar with the dividend policy which includes Types of Dividend policy, Procedure for declaring dividend, Why do companies declare dividendInterest of capital of partners appropriation of profit and loss
Interest of capital of partners appropriation of profit and lossTutors On Net
Ìý
Interest on Capital is entitled to partners only when it is specified
in the Partnership Deed. The proposal for offering the interest on capital
is to recompense the opportunity cost underwent by the partners by not
endowing the money elsewhere in securities with modest or no hazard.Types of dividents
Types of dividentsKaila Premchand
Ìý
Dividends can be classified in several ways:
1. Based on the source of funds, dividends are either profit dividends paid from earnings or liquidation dividends paid from capital.
2. Based on the type of shares, dividends are either equity dividends paid to ordinary shareholders or preference dividends paid to preferred shareholders.
3. Based on the payment method, dividends can be paid in cash, stock, bonds, property, or a combination through composite dividends.Partnership
Partnershipharrysmarty110
Ìý
The document discusses the accounting treatment for goodwill in partnerships when there are changes to the partnership. It provides information on calculating goodwill when a new partner is admitted, an existing partner retires, or the profit sharing ratios change. Goodwill is the excess of the purchase price over the fair value of the identifiable net assets acquired in a business combination. In partnerships, goodwill must be revalued and allocated among the partners' capital accounts for any changes to the partnership structure or profit sharing agreements.Webinar ºÝºÝߣs: Tax Considerations for Debt-Financed Distributions from Partn...
Webinar ºÝºÝߣs: Tax Considerations for Debt-Financed Distributions from Partn...MHM (Mayer Hoffman McCann P.C.)
Ìý
Original air date: Dec. 14, 2017
Recording available at http://www.mhmcpa.com
Partnerships often hear the calling from private equity fund partners to monetize a portion of the value they own, even though they are not yet ready to deploy their exit strategy. Partnerships offer tremendous flexibility to accomplish this objective in a tax-efficient manner using debt-financed distributions. However, these transactions leave potential traps for the unwary.
In this webcast, we will provide comprehensive examples of the tax consequences of debt-financed distributions, from the moment they are made through typical subsequent events that affect their tax results.Earning per share AS- 20
Earning per share AS- 20VIKAS DUBEY
Ìý
This presentation is on Accounting Standard - 20 Earnings per share issued by Institute of Chartered Accountants of India.
Dividend Policy Report
Dividend Policy ReportChristine Manongsong
Ìý
This document discusses dividend policy and various related concepts. It defines dividends as distributions from company profits to shareholders. A dividend policy determines how much a company will pay out to shareholders. Dividend dates include the record, declaration, ex-dividend, and payment dates. The types of dividends covered are cash, property, liability, and stock dividends. The document also discusses different dividend policies and factors that affect dividend amounts.Dividend Decision 03
Dividend Decision 03rajeevgupta
Ìý
The document discusses the dividend decision as one of the four major finance decisions a firm must make. It summarizes the dividend process and different types of dividend actions like bonus shares, stock splits, and share buybacks. It also discusses the impact of dividends on shareholders in terms of taxes. The document then discusses the dividend irrelevance theory proposed by Miller and Modigliani that the value of a firm is not affected by whether it pays dividends or retains earnings. It provides an example to illustrate how the value of the firm remains the same under both scenarios.Webinar ºÝºÝߣs: Tax Considerations for Debt-Financed Distributions from Partn...
Webinar ºÝºÝߣs: Tax Considerations for Debt-Financed Distributions from Partn...MHM (Mayer Hoffman McCann P.C.)
Ìý
Similar to Tax- Chapter 5 Part 2 Presentation final (20)
Survey 5e ch8_lecture
Survey 5e ch8_lecturecamhenlin
Ìý
This chapter discusses how businesses finance their operations through debt or equity financing. It describes key liabilities like current liabilities, notes payable, taxes, and contingencies. It also explains how businesses issue bonds and stock to raise capital. The chapter covers accounting for dividends, stock splits, and their impact on financial statements. It analyzes how debt versus equity financing affects earnings per share.Lec8 dividend policy
Lec8 dividend policyUniversity of Balochistan
Ìý
dividend policy, irrelevance of dividend, relevance of dividend, factors effecting the dividend policy, stock split, stock reverse, stock dividend, treasury stock, stable and fixed dividend policiesDividend decision in financial management and decision making
Dividend decision in financial management and decision makingshrutisingh143670
Ìý
The document discusses factors to consider when determining a company's dividend policy. It explains that a dividend policy involves deciding how much of profits to distribute as dividends versus retaining earnings. The dividend payout ratio, stability of dividends, liquidity, growth plans, and control are important factors to consider. An effective policy balances paying dividends to investors with retaining enough earnings to finance future growth opportunities.L3.pptx
L3.pptxMsSanaAmjad
Ìý
he financing decision is a strategic process that involves evaluating different sources of capital, considering their costs and risks, and determining the optimal mix to achieve the company's financial objectives.401.ch08.karayan
401.ch08.karayanGorfneh Gurmu
Ìý
The document discusses the process of partnership liquidation, including dissolution, termination, and liquidation. It covers voluntary and involuntary liquidation, the accountant's responsibilities in managing the process, marshaling assets, creditor claims by priority, and the liquidation process. This includes closing books, allocating gains/losses, paying liabilities, and distributing remaining assets to partners through lump-sum or installment methods. Statements of realization and liquidation and cash distribution/safe payment plans are discussed as tools to outline the liquidation process and allocation of distributions.2020-02-11 Tax Issues for Startups final.ppt
2020-02-11 Tax Issues for Startups final.pptRoger Royse
Ìý
Roger Royse presented on tax issues related to startups. He discussed 12 key tax issues including choice of entity, qualified small business stock, Section 305 issues related to disproportionate stock distributions, startup formation, and taking money off the table. He provided an overview of the relevant tax considerations and potential solutions for each issue.Dividend &and types
Dividend &and typesMERIN C
Ìý
Dividends refer to a company's net profits that are distributed to shareholders. There are several types of dividends including cash dividends, stock dividends, bond dividends, and property dividends. Cash dividends are the most common, paid out of earnings to shareholders periodically. Stock dividends distribute additional shares to shareholders, conserving the company's cash. Bond dividends, also called script dividends, promise future payment with bonds if the company cannot pay a cash dividend currently. Property dividends distribute assets other than cash in exceptional circumstances.Shedding Light on S-Corporation Basis: Reporting and Documentation
Shedding Light on S-Corporation Basis: Reporting and DocumentationConference Panel
Ìý
Join us for the "Form 7203 S-Corporation Basis Reporting Webinar" where we will delve into the intricacies of this new reporting form on individual tax returns for shareholders of S-corporations. This webinar is designed to provide shareholders with a comprehensive understanding of Form 7203, including how to accurately calculate their basis in the corporation and effectively complete the form.
During this webinar, our expert speaker will guide you through the fundamentals of S-corporation basis reporting. We will explore the intricacies of calculating basis, considering both the basic principles and the potential complexities that can arise. By attending this webinar, you will gain the knowledge necessary to accurately determine your basis and avoid common pitfalls.
Whether you are a seasoned shareholder or new to S-corporations, this webinar is a valuable resource for anyone seeking to enhance their understanding of basis reporting and streamline their tax compliance. Join us for the "Form 7203 S-Corporation Basis Reporting Webinar" and empower yourself with the knowledge to navigate this important aspect of your tax obligations.
Register Now,
https://conferencepanel.com/conference/form-7203-s-corporation-basis-reportingDividend theory & policy
Dividend theory & policyvijay lahri
Ìý
This document discusses dividend theory and policy. It explains that in the absence of dividends, corporate earnings accrue to shareholders as retained earnings that are automatically reinvested in the firm. However, when dividends are declared, those funds leave the firm permanently. The document then outlines several factors that determine a firm's dividend policy, including dividend payout ratio, stability of dividends, legal restrictions, and owners' considerations. It provides examples and explanations of different types of dividend payments, including cash dividends, stock dividends, stock splits, and share repurchases.FICs-in-Tax-Estate-Planning_JK_27-July-22.pdf
FICs-in-Tax-Estate-Planning_JK_27-July-22.pdfSean Rowbotham FCA MBA
Ìý
The document discusses Family Investment Companies (FICs), which are private companies used as an alternative to family trusts. Key features of FICs include shareholders being family members and enabling parents to retain control over assets in a tax efficient manner. Typical structures involve parents providing funds through interest-free loans or preference shares and retaining voting shares. FICs allow profits to accumulate and be distributed to family members in a tax efficient way. However, future changes to taxation of retained profits could impact the benefits of FICs. Planning is needed to ensure FICs continue to provide estate planning benefits for families.Corporate actions
Corporate actionsSARANYA K
Ìý
Corporate actions are initiates by the company which have impacted the investors perception towards investmentCapital Gains Vs. Dividends: Demystifying Your Investment Returns
Capital Gains Vs. Dividends: Demystifying Your Investment ReturnsSharp Asset Management
Ìý
Capital gains or low-payout firms are preferable for investors as they avoid the periodic distribution of dividends. As the market value changes over time, shareholders are uncertain about the profit company will offer to them. Dividend issues
Dividend issuesmadninoor123
Ìý
This document discusses dividend policy and share repurchases. It notes that dividends distribute value to shareholders, and outlines important dates related to dividend declarations including the declaration date, record date, ex-dividend date, and payment date. It also discusses the tax advantages of share repurchases over dividends and some reasons why firms may opt to repurchase shares rather than pay dividends, such as signaling undervaluation or improving financial flexibility.Top tax issues for startup companies (10 3-16 revision)
Top tax issues for startup companies (10 3-16 revision)Roger Royse
Ìý
The document discusses tax issues related to startup companies. It begins by covering the choice of entity for a startup, comparing an LLC, S corporation, and C corporation. It discusses factors such as taxation at the entity level, eligibility requirements for owners, taxation of stock options, and double taxation for C corporations. The document then covers specific issues related to Section 305 of the tax code and how it applies to common scenarios for startups, such as convertible preferred stock and accrual of dividends. It also discusses the tax treatment of different types of stock rights for startups.Meeting 4 - Valuation Market Ratios (Financial Reporting and Analysis)
Meeting 4 - Valuation Market Ratios (Financial Reporting and Analysis)Albina Gaisina
Ìý
This document discusses various valuation market ratios used to evaluate companies, including earnings per share (EPS), dividend per share (DPS), dividend payout ratio, dividend yield, price to earnings (P/E) ratio, and market to book value ratio. It provides the formulas and explanations for how to calculate and interpret each ratio. Key points include that dividends are reported on the statement of cash flows and statement of changes in stockholders' equity, and that ratios should only be used to compare companies within the same industry due to differences in business models and growth rates across sectors.Succession Planning using Equity Incentive Plan and ESOPs
Succession Planning using Equity Incentive Plan and ESOPswifilawgroup
Ìý
The document discusses succession planning strategies for privately held companies using equity incentive plans and employee stock ownership plans (ESOPs). It outlines challenges in implementing equity plans, different types of equity awards such as phantom stock and stock appreciation rights, and tax issues related to profits interests in LLCs. Case studies examine using incentive shares or phantom stock appreciation rights to incentivize employees prior to an exit. A final case study looks at establishing an LLC and awarding profits interests to management. The document also reviews how ESOPs can facilitate transferring ownership while deferring capital gains tax.Pengantar Akuntansi 2 - Ch13 Accounting for Partnership
Pengantar Akuntansi 2 - Ch13 Accounting for Partnershipyuliapratiwi2810
Ìý
Bahan Mata Kuliah Pengantar Akuntansi 2 - Usakti
Accounting Principles 7th ed. Kieso, Weygand & KimmelDividend decisions
Dividend decisionspadmach8
Ìý
This document discusses dividend policy decisions and the MM approach. It begins by defining dividends and discussing sources and types of dividends. It then discusses what a dividend policy is and the key determinants of dividend policy such as legal restrictions, earnings trends, and shareholder preferences. The document also summarizes the irrelevance concept of dividends proposed by Modigliani and Miller, which states that dividend policy does not impact firm value under certain assumptions. It provides the formulas used in the MM approach to model how dividend payments do not affect share prices.Aggregaaccounting for partnership
Aggregaaccounting for partnershipGirish Sawhney
Ìý
This document provides an overview of accounting for partnerships. It discusses the key characteristics of partnerships, including association of individuals, mutual agency, limited life, unlimited liability, and co-ownership of property. The document outlines the accounting entries for forming a partnership and dividing net income or loss among partners. It also describes how partnership financial statements are prepared and the effects of liquidating a partnership, including how gains or losses are allocated to partners.Dividend Theory
Dividend TheoryMohd Rizal Miseman
Ìý
Theories on dividends for corporate finance students.
These slides are not mine.
Credit goes to the real owner.More from Anita Nizam (7)
HDF presentation
HDF presentationAnita Nizam
Ìý
The presentation discussed human development efforts by the Human Development Foundation including social mobilization programs, education and literacy initiatives, primary healthcare services, economic development projects, and activities promoting sustainable environments. The foundation aims to empower communities and improve living standards through various outreach activities.Susan B Anthony Powerpoint
Susan B Anthony PowerpointAnita Nizam
Ìý
Susan B. Anthony was a pioneering leader in the women's suffrage movement in the 19th century. She was born in 1820 to Quaker parents who were abolitionists and reformists. In 1848, she attended the Seneca Falls Convention, which was the first women's rights convention. There she met Elizabeth Cady Stanton, with whom she formed a pivotal partnership. Together they campaigned tirelessly for women's right to vote and own property. In 1872, Anthony was arrested for voting illegally as a woman. It took another 48 years after her death for the 19th amendment to be ratified in 1920, granting women the right to vote nationwide. Anthony demonstrated transformational leadership and was committed to equality and justice forThe Lack of leadership
The Lack of leadershipAnita Nizam
Ìý
This document discusses the impact of terrorism in Pakistan from 2003-2014, including over 57,000 deaths, $125 billion in property losses, reduced investment, and high unemployment. It also notes the challenges facing Pakistan's leaders in addressing terrorism, such as admitting past mistakes, the high financial and political costs of military action, and divisions over the best strategy. The document recommends that leaders provide vision, align followers, build trust, plan effectively, and authentically lead the nation through this difficult situation.McGladrey Case Study Presentation
McGladrey Case Study PresentationAnita Nizam
Ìý
This case study discusses the consolidation of Le Pumps (UK) into its parent company Ferguson (US). Le Pumps' functional currency is determined to be the British Pound based on the economic factors test. The steps of the consolidation process are outlined, including translating the investment account, eliminating the subsidiary's equity, eliminating unrealized profits on intercompany transactions, and eliminating intercompany receivables and payables, with any related translation gains or losses. The case also provides an example where Ferguson forgives a $2 million loan to Le Pumps, resulting in a gain for Le Pumps and loss for Ferguson, with translation gains or losses included.Final Cloud Presentation
Final Cloud PresentationAnita Nizam
Ìý
The document discusses key concepts related to cloud computing including that it relies on sharing computer resources over the internet rather than local servers, it provides on-demand access to computing resources, and examples of cloud service models include SaaS, PaaS, and IaaS. The cloud computing model offers various benefits such as cost effectiveness, unlimited storage, ease of access, and elastic computing ability. Some example industries that use cloud computing include banks, healthcare, and logistics companies.Home Depot Presentation-Anita.ppt final
Home Depot Presentation-Anita.ppt finalAnita Nizam
Ìý
This document provides a valuation and analysis of Home Depot. It summarizes the company's market position, growth potential, management, key assumptions, and forecasts. A sensitivity analysis examines how the valuation would change based on assumptions about the WACC, terminal growth rate, and sales growth. The analysis values Home Depot at $114-122 per share, similar to its current trading range. The document recommends buying the stock due to increasing sales and margins, dividend payments, stock buybacks, and key initiatives.ANITA SAYYED resume for job fair
ANITA SAYYED resume for job fairAnita Nizam
Ìý
Anita Nizam Sayyed is seeking a position that provides experience in multiple areas of accounting and potential for growth. She has a Master's in Accounting Science from Northern Illinois University and is a Certified Public Accountant. Her professional experience includes positions at Eder Casella & Co. as a Staff Accountant and at Miller Cooper & Co. as an Audit Senior. Previously, she worked in Pakistan at Deloitte Touché Tohmatsu, where she conducted audits across various industries as part of her articleship to become a Chartered Accountant. She is proficient in Urdu, Hindi, Punjabi and English.Tax- Chapter 5 Part 2 Presentation final
- 1. Anita Sayyed, Thomas Labelle, Sravya Boddu, Brian Reynolds Chapter 5: Taxing Corporate Distributions
- 2. Learning Objectives (Review) • LO. 1: Explain the role that earnings and profits play in determining the tax treatment of distributions • LO.3: Determine taxable dividends paid during the year by correctly allocating current and accumulated E & P to corporate distributions
- 3. RECAP Accumulated Current E&P E&P •Current 1st pro rata, accumulated chronological as necessary •Netted at the date of distribution •Do NOT net! Dividend income to the extent of current positive balance •No dividend income, results in return of capital or capital gain
- 4. Learning Objectives (New) LO.4: Describe the tax treatment of dividends for individual shareholders LO.5: Evaluate the tax impact of property dividends by computing the shareholder’s dividend income, basis in the property received, and the effect on the distributing corporation's E & P and taxable income
- 5. LO 4: Tax Treatment of Dividends Corporations: Dividend income for corporations is ordinary income and they receive dividend received deductions. • Ownership less than 20% 70% exempt • Ownership 20%-50% 80% exempt • Ownership more than 50% 100% exempt
- 6. Individuals: Individuals are taxed at lower preferential rates for qualified dividends. • Individuals paying tax @ 10-15% 0% • Individuals paying tax @ 39.6% 20% • For any other tax bracket 15% LO 4: Tax Treatment of Dividends
- 7. LO 4: Tax Treatment of Dividends Qualified dividends: • Paid by domestic or qualified /approved corp. • Short or long positions do NOT qualify • Stock held more than 60 days during the 121 days period ▫ 60 days begins before the before ex-dividend date ▫Ex-Dividend date: 2 days before the declaration of dividend • Example 2
- 8. LO 5: Property Dividends Reasons for Property Distribution: • Shareholders may want a particular property • Company low on cash reserves may want to distribute dividends to shareholders (Property distributions are taxed on the same rates as cash dividend) EFFECT ON SHAREHOLDER: • The amount distributed is the FMV of the property distributed reduced by any liability that the property is subject to or any liability of the corporation that the shareholder assumes. • Example 3
- 9. LO 5: Property Dividends EFFECT on CORPORATION: • The distribution of property is treated as sale/exchange of property at its FMV. Corporations recognize gain on distribution (FMV-Basis) • If a loss is realized it will not be recognized on the tax return. (to avoid negative dividend) • Example 4
- 10. LO 5: Property Dividends EFFECT ON SHAREHOLDER: • Distribution covered by E&P is treated as dividend and the excess is treated as return of capital. The amount of return greater than shareholder’s basis is taxed as capital gain • The FMV of the property received as dividend will be the basis of the property for the shareholder. • Example 5
- 11. LO 5: Property Dividends • If the liability assumed is greater than the corporation’s basis in the property, The FMV is deemed not to be less than the liability. The shareholder’s basis in the property will be the FMV of the liability • Example 6
- 12. LO 5: Property Dividends • Corporate distributions reduce the E&P by the amount of money distributed. (assuming enough basis) Or by greater of FMV or adjusted basis of property distributed Less: the amount of any liability assumed • E&P will increase by any gain recognized on distribution of property • Examples 7, 8, 9
- 13. LO 5: Property Dividends • A distribution of cash or property cannot generate a deficit or add to a deficit in E&P. Deficits can arise only through corporate losses. • Example 10
- 14. RECAP EFFECT ON CORPORATION EFFECT ON SHAREHOLDER FMV > Basis Distribution=FMV Gain is recognized Distribution=FMV Basis=FMV FMV < Basis Distribution= Basis loss is not recognized Distribution =FMV Basis=FMV FMV > Basis Liability is assumed Distribution=FMV - Liab assumed Gain is recognized Distribution=FMV-Liability Basis=FMV Liability>FMV deemed FMV=liability assumed Distribution = greater of FMV or Basis Gain if any is recognized deemed FMV=Liability Distribution=FMV-Liability Basis=FMV