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With its return, and not later than its due date, the corporation must file Form 972 duly executed by each consenting shareholder, as well as Form 973, Corporation Claim for Deduction for Consent Dividends, showing by classes the stock outstanding on the first and last days of the tax year, the dividend rights of such ...
Avoid Taxes with Retirement Accounts To do this, simply hold the dividend-paying securities in a tax-deferred retirement account such as a 401(k) or IRA. Contributions to these accounts may be tax-deductible, so your dividend reinvestments escape taxation at the time you make them.
2. Form 1099-B Instructions - A complete breakdown In Box 1a, enter a description of the property. ... In Box 1b enter the date of acquisition. ... In Box 1c, enter the date of the sale or exchange. In Box 1d, enter the gross cash proceeds.
Purpose of form. Form 972 is used by a shareholder who agrees to report a consent dividend as taxable income in the form of a dividend on the shareholder's own tax return even though the shareholder receives no actual cash distribution of the consented amounts.
Dividend reinvestment has some drawbacks. One downside is that investors have no control over the price at which they buy shares. If the stock gains significant value, they'd still buy shares at what could be a high price.