Question

The below dividends were received by G. Camarena Enterprises. Red Car Inc. (a taxable Delaware corporation in which G. Camarena holds an 8% stock interest) $ 61,000 Brown Truck Inc. (a taxable Florida corporation in which G. Camarena holds a 90% stock interest) 126,000 G. Camarena Enterprises and Brown Truck Inc. do not file a consolidated tax return. What is the G. Camarena's dividends-received deduction?

Answer 1

Solution:
Percentage of ownership	Deduction Percentage
Less than 20%	50%
20% or more (but less than 80%)	65%
80% or more	1005
Company	Dividend Received	Percentage of	Deduction	Deduction
		Ownership	Percentage
Red Car Inc.	$61,000	8%	50%	$30,500
Brown Truck Inc.	$126,000	90%	100%	$126,000
Total				$156,500
G. Camarena's dividends -received deduction = $156,500
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