Not exact matches
Distributions made
for any other
purpose are subject to
income tax and a 10 percent penalty.
In addition, the amount of the fund's
income distributions will vary over time and the breakdown of returns between fund
distributions and liquidation proceeds will not be predictable at the time of your investment, resulting in a gain or loss
for tax purposes.
If we pay
distributions on our common stock, those
distributions generally will constitute dividends
for U.S. federal
income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal
income tax principles.
As discussed above, notwithstanding receipt by HP Co. of a private letter ruling from the IRS and / or opinions of counsel and other external
tax advisors, the IRS could assert that the
distribution does not qualify
for tax - free treatment
for U.S. federal
income tax purposes.
Accordingly, notwithstanding receipt by HP Co. of the IRS private letter ruling and the
tax opinions referred to above, the IRS could assert that the
distribution and / or certain related transactions do not qualify
for tax - free treatment
for U.S. federal
income tax purposes.
Accordingly, notwithstanding receipt by HP Co. of the IRS private letter ruling and the
tax opinions referred to above, there can be no assurance that the IRS will not assert that the
distribution and / or certain related transactions do not qualify
for tax - free treatment
for U.S. federal
income tax purposes or that a court would not sustain such a challenge.
It is a condition to the
distribution that HP Co. receive (i) a private letter ruling from the IRS and / or one or more opinions from its external
tax advisors, in each case, satisfactory to HP Co.'s board of directors, regarding certain U.S. federal
income tax matters relating to the separation and related transactions, and (ii) an opinion of each of Wachtell, Lipton, Rosen & Katz and Skadden, Arps, Slate, Meagher & Flom LLP, satisfactory to HP Co.'s board of directors, regarding the qualification of the
distribution, together with certain related transactions, as a transaction that is generally
tax - free,
for U.S. federal
income tax purposes, under Sections 355 and 368 (a)(1)(D) of the Code.
Accordingly, notwithstanding receipt of the IRS private letter ruling and / or opinions of counsel or other external
tax advisors, the IRS could determine that the
distribution and certain related transactions should be treated as taxable transactions
for U.S. federal
income tax purposes if it determines that any of the facts, assumptions, representations, statements or undertakings that were included in the request
for the IRS private letter ruling or on which any opinion was based are false or have been violated.
However, if we do make
distributions on our Class A common stock, those payments will constitute dividends
for U.S.
tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal
income tax principles.
In addition, certain events that may or may not be within the control of HP Inc. or Hewlett Packard Enterprise could cause the
distribution and certain related transactions to not qualify
for tax - free treatment
for U.S. federal
income tax purposes.
The potential
tax benefits from investing in MLPs depend on their being treated as partnerships
for federal
income tax purposes and, if the MLP is deemed to be a corporation, then its
income would be subject to federal taxation at the entity level, reducing the amount of cash available
for distribution to the fund which could result in a reduction of the fund's value.
For federal
income tax purposes, fund
distributions of long - term capital gains are generally taxable at reduced long - term capital gain rates.
* HSA contributions, earnings, and
distributions used to pay
for qualified medical expenses are
tax free
for federal
income tax purposes.
Marriott International said it anticipates the receipt of an IRS private - letter
tax ruling in September, confirming that the
distribution of shares of Marriott Vacations Worldwide common stock will not result in the recognition,
for U.S. federal
income tax purposes, of
income, gain or loss by Marriott International or Marriott International shareholders, except, in the case of Marriott International shareholders,
for cash received in lieu of fractional shares.
Upon dissolution or winding up of said corporation's affairs, whether voluntary or involuntary, all of its assets then remaining in the hands of the board of directors shall, after paying or making provision
for payment of all of said corporation's liabilities, be distributed, transferred, conveyed, delivered, and paid over only to educational, scientific, literary, or charitable organizations that are exempt from federal
income tax under section 501 (c)(3) of the Internal Revenue Code of 1986, as amended, and which are not private foundations within the meaning of section 509 (a) of the Internal Revenue Code of 1986, as amended, on whatever terms and conditions and in whatever amounts the board of directors may determine,
for use exclusively
for educational, scientific, literary, or charitable
purposes, except that no
distribution shall be made to organizations testing
for public safety.
For federal
income tax purposes, fund
distributions of long - term capital gains are generally taxable at reduced long - term capital gain rates.
Any
distributions resulting from such gains will be considered ordinary
income for federal
income tax purposes.
Distributions are taxable to you
for federal
income tax purposes, whether or not you reinvest these amounts in additional Fund shares.
As a result, investors will receive an official
tax statement from their broker detailing the type of
income they have to report
for tax purposes for the entire year and not
for each
distribution.
An unfavorable audit will likely result in some portion of the
distributions being reclassified as earned
income for federal
income tax purposes, which results in a deficiency assessment (i.e., a
tax bill), interest on those unpaid
taxes, and IRS penalties.
As such, any
distribution taken from a Roth
for that
purpose and under those conditions will be both
income tax - and penalty - free.
In other words, unless ROC
distributions are reinvested in either the same fund or another investment, the interest on the portion of the borrowed money that relates to those
distributions would no longer be
tax deductible since the funds are no longer being used
for an
income - earning
purpose.
For REITs, dividend distributions for tax purposes are allocated to ordinary income, capital gains and return of capital, each of which may be taxed at a different ra
For REITs, dividend
distributions for tax purposes are allocated to ordinary income, capital gains and return of capital, each of which may be taxed at a different ra
for tax purposes are allocated to ordinary
income, capital gains and return of capital, each of which may be
taxed at a different rate.
Distributions may include amounts characterized for federal income tax purposes as ordinary dividends (including qualified dividends), capital gain distributions and nondividend distributions, also known as return of capital d
Distributions may include amounts characterized
for federal
income tax purposes as ordinary dividends (including qualified dividends), capital gain
distributions and nondividend distributions, also known as return of capital d
distributions and nondividend
distributions, also known as return of capital d
distributions, also known as return of capital
distributionsdistributions.
Each Fund reports the character of
distributions for federal
income tax purposes each calendar year on Form 1099 - DIV.
Shareholders electing to receive
distributions in the form of additional shares will have a cost basis
for federal
income tax purposes in each share so received equal to the net asset value of a share on the reinvestment date.
The characterization of
distributions for tax purposes (such as dividends, other
income, capital gains etc.)
for each period will be reported only after the Fund's
tax year end.
But what insurance agents really mean when they make this point is if you put money in a
tax - advantaged retirement plan like a 401 (k) and want to take it out
for a
purpose other than retirement, you might have to pay a 10 % early
distribution penalty plus the
income tax that's due.