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The dividends received deduction Must exceed the applicable percentage of the recipient
shareholder's taxable income Is affected by a requirement that the investor corporation must
own the investee's stock for a specified minimum holding period Is unaffected by the percentage
of the investee's stock owned by the investor corporation May be claimed by S corporations
Solution
The dividends received deduction
Is affected by a requirement that the investor corporation must own the investee's stock for a
specified minimum holding period.
Ans) B
Clarification:
DEDUCTIONS THAT CANNOT BE CLAIMED by S Corp,
dividends received deduction (allowed to C corporation).
us production deduction

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