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| *Ostroff, Fair and Company>>>Canada Taxes |
When do you include a paid dividend in the tax return? |
A company declares a dividend before the end of its fiscal year but pays it after that year. Does it include it in is tax return of the year of declaration or in the tax return of the year of payment ? You declare it in the year you actually receive the money. You're not entitled to the money until the next year, so for tax purposes, you declare it when you receive it. It's similar with capital gains - if you sell stock on Dec 30, the settlement date will be in January. You aren't entitled to receive the money until January, so you declare it on the next year's tax return. can i contact u? my contact id: tsnmrahman@yahoo.co.in what yours? i have tried to reply ur message. but, it failed. JOURNAL ENTRIES FOR DIVIDENDS - it declares a $10,000 cash dividend Dividends declared(Dr.) Dividends payable(Cr.) Dividen declared is temporary account -The date of declaration鈥攏o journal entry -The date of dividend payment Dividends payable(Dr.) Cash(Cr.) So, i guess, they wont effect Income statement. my id is tsnmrahman@yahoo.co.in can i have your one? if u mail me using this address, plz, do write on the subject, from which i can identify you. They should send you a form stating the amount, the gov't also gets a copy. If the forms are like the ones in the US it will have the taxyear on it, you just file it with whatever year is listed on the form. |
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