26 U.S.C. § 316
Dividend defined
# (a) General rule
For purposes of this subtitle, the term “dividend” means any distribution of property made by a corporation to its shareholders— (1) out of its earnings and profits accumulated after February 28, 1913 , or (2) out of its earnings and profits of the taxable year (computed as of the close of the taxable year without diminution by reason of any distributions made during the taxable year), without regard to the amount of the earnings and profits at the time the distribution was made. Except as otherwise provided in this subtitle, every distribution is made out of earnings and profits to the extent thereof, and from the most recently accumulated earnings and profits. To the extent that any distribution is, under any provision of this subchapter, treated as a distribution of property to which section 301 applies, such distribution shall be treated as a distribution of property for purposes of this subsection.
# (b) Special rules
(1) Certain insurance company dividends The definition in subsection (a) shall not apply to the term “dividend” as used in subchapter L in any case where the reference is to dividends of insurance companies paid to policyholders as such.
(2) Distributions by personal holding companies (A) In the case of a corporation which— (i) under the law applicable to the taxable year in which the distribution is made, is a personal holding company (as defined in section 542), or (ii) for the taxable year in respect of which the distribution is made under section 563(b) (relating to dividends paid after the close of the taxable year), or section 547 (relating to deficiency dividends), or the corresponding provisions of prior law, is a personal holding company under the law applicable to such taxable year, the term “dividend” also means any distribution of property (whether or not a dividend as defined in subsection (a)) made by the corporation to its shareholders, to the extent of its undistributed personal holding company income (determined under section 545 without regard to distributions under this paragraph) for such year. (B) For purposes of subparagraph (A), the term “distribution of property” includes a distribution in complete liquidation occurring within 24 months after the adoption of a plan of liquidation, but— (i) only to the extent of the amounts distributed to distributees other than corporate shareholders, and (ii) only to the extent that the corporation designates such amounts as a dividend distribution and duly notifies such distributees of such designation, under regulations prescribed by the Secretary, but (iii) not in excess of the sum of such distributees’ allocable share of the undistributed personal holding company income for such year, computed without regard to this subparagraph or section 562(b).
(3) Deficiency dividend distributions by a regulated investment company or real estate investment trust The term “dividend” also means any distribution of property (whether or not a dividend as defined in subsection (a)) which constitutes a “deficiency dividend” as defined in section 860(f).
(4) Certain distributions by regulated investment companies in excess of earnings and profits In the case of a regulated investment company that has a taxable year other than a calendar year, if the distributions by the company with respect to any class of stock of such company for the taxable year exceed the company’s current and accumulated earnings and profits which may be used for the payment of dividends on such class of stock, the company’s current earnings and profits shall, for purposes of subsection (a), be allocated first to distributions with respect to such class of stock made during the portion of the taxable year which precedes January 1.
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Cited by 67
- 26 CFR § 1.1012-1 — Basis of property.
- 26 CFR § 1.1244(c)-1 — Section 1244 stock defined.
- 26 CFR § 1.1248-2 — Earnings and profits attributable to a block of stock in simple cases.
- 26 CFR § 1.1248-3 — Earnings and profits attributable to stock in complex cases.
- 26 CFR § 1.1248-4 — Limitation on tax applicable to individuals.
- 26 CFR § 1.1362-2 — Termination of election.
- 26 CFR § 1.1368-1 — Distributions by S corporations.
- 26 CFR § 1.1371-1 — Distributions of money by an eligible terminated S corporation.
- 26 CFR § 1.1411-10 — Controlled foreign corporations and passive foreign investment companies.
- 26 CFR § 1.1441-3 — Determination of amounts to be withheld.
- 26 CFR § 1.1502-43 — Consolidated accumulated earnings tax.
- 26 CFR § 1.163(j)-10 — Allocation of interest expense, interest income, and other items of expense and gross income to an excepted trade or business.
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- 26 CFR § 1.163(j)-4 — General rules applicable to C corporations (including REITs, RICs, and members of consolidated groups) and tax-exempt corporations.
- 26 CFR § 1.243-3 — Certain dividends from foreign corporations.
- 26 CFR § 1.245-1 — Dividends received from certain foreign corporations.
- 26 CFR § 1.245A-5 — Limitation of section 245A deduction and section 954(c)(6) exception.
- 26 CFR § 1.250(b)-1 — Computation of foreign-derived intangible income (FDII).
- 26 CFR § 1.301-1 — Rules applicable with respect to distributions of money and other property.
- 26 CFR § 1.312-11 — Effect on earnings and profits of certain other tax-free exchanges, tax-free distributions, and tax-free transfers from one corporation to another.
- 26 CFR § 1.316-1 — Dividends.
- 26 CFR § 1.316-2 — Sources of distribution in general.
- 26 CFR § 1.331-1 — Corporate liquidations.
- 26 CFR § 1.358-1 — Basis to distributees.
- 26 CFR § 1.367(b)-7 — Carryover of earnings and profits and foreign income taxes in certain foreign-to-foreign nonrecognition transactions.
- 26 CFR § 1.381(c)(17)-1 — Deficiency dividend of personal holding company.
- 26 CFR § 1.385-3 — Certain distributions of debt instruments and similar transactions.
- 26 CFR § 1.404(a)-1 — Contributions of an employer to an employees' trust or annuity plan and compensation under a deferred payment plan; general rule.
- 26 CFR § 1.543-1 — Personal holding company income.
- 26 CFR § 1.547-2 — Requirements for deficiency dividends.
- 26 CFR § 1.56(g)-1 — Adjusted current earnings.
- 26 CFR § 1.562-1 — Dividends for which the dividends paid deduction is allowable.
- 26 CFR § 1.563-3 — Dividends considered as paid on last day of taxable year.
- 26 CFR § 1.565-2 — Limitations.
- 26 CFR § 1.565-3 — Effect of consent.
- 26 CFR § 1.6042-3 — Dividends subject to reporting.
- 26 CFR § 1.6045-2 — Furnishing statement required with respect to certain substitute payments.
- 26 CFR § 1.61-9 — Dividends.
- 26 CFR § 1.7701(l)-3 — Recharacterizing financing arrangements involving fast-pay stock.
- 26 CFR § 1.815-2 — Distributions to shareholders.
- 26 CFR § 1.856-1 — Definition of real estate investment trust.
- 26 CFR § 1.860-2 — Requirements for deficiency dividends.
- 26 CFR § 1.861-3 — Dividends and income inclusions under sections 951, 951A, and 1293 and associated section 78 dividends.
- 26 CFR § 1.871-10 — Election to treat real property income as effectively connected with U.S. business.
- 26 CFR § 1.871-15 — Treatment of dividend equivalents.
- 26 CFR § 1.884-2T — Special rules for termination or incorporation of a U.S. trade or business or liquidation or reorganization of a foreign corporation or its domestic subsidiary (temporary).
- 26 CFR § 1.902-1 — Credit for domestic corporate shareholder of a foreign corporation for foreign income taxes paid by the foreign corporation.
- 26 CFR § 1.902-2 — Treatment of deficits in post-1986 undistributed earnings and pre-1987 accumulated profits of a first- or lower-tier corporation for purposes of computing an amount of foreign taxes deemed paid under § 1.902-1.
- 26 CFR § 1.902-3 — Credit for domestic corporate shareholder of a foreign corporation for foreign income taxes paid with respect to accumulated profits of taxable years of the foreign corporation beginning before January 1, 1987.
- 26 CFR § 1.907(c)-2 — Section 907(c)(3) items (for taxable years beginning after December 31, 1982).
- 26 CFR § 1.951-3 — Coordination of subpart F with foreign personal holding company provisions.
- 26 CFR § 1.954-6 — Foreign base company shipping income.
- 26 CFR § 1.955-6 — Gross income from sources within less developed countries.
- 26 CFR § 1.959-3 — Allocation of distributions to earnings and profits of foreign corporations.
- 26 CFR § 1.963-3 — Distributions counting toward a minimum distribution.
- 26 CFR § 1.965-2 — Adjustments to earnings and profits and basis.
- 26 CFR § 1.995-1 — Taxation of DISC income to shareholders.
- 26 CFR § 1.996-1 — Rules for actual distributions and certain deemed distributions.
- 26 CFR § 1.996-3 — Divisions of earnings and profits.
- 26 U.S.C. § 301 — Distributions of property
- 26 U.S.C. § 331 — Gain or loss to shareholder in corporate liquidations
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