tag:blogger.com,1999:blog-4402283548766807872.post6423436169874054914..comments2024-03-20T02:26:06.500-04:00Comments on The Blunt Bean Counter: What Small Business Owners Need to Know - Intercorporate Dividends are not Necessarily Tax-Free AnymoreThe Blunt Bean Counterhttp://www.blogger.com/profile/11358868550072516313noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4402283548766807872.post-25535127660769521122016-02-09T11:15:25.967-05:002016-02-09T11:15:25.967-05:00Hi Joel
While I am not commenting on the technica...Hi Joel<br /><br />While I am not commenting on the technical aspects of this post, you clearly capture the issue here, paying a dividend reduces the value of the payor company.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-371913413194186202016-02-09T09:08:19.561-05:002016-02-09T09:08:19.561-05:00Well that's odd.
"but will now capture d...Well that's odd.<br /><br />"but will now capture dividends for which the purpose of the dividend “is to significantly reduce the value of the share”."<br /><br />I always pay dividends for the purpose of significantly reducing the value of shares of my company. Paying out a dividend of $1 reduces the value of my company by $1. And by extracting cash from my corporation, I increase the value of my person. <br /><br />Arguably, in the OpCo and Holdco situation, the purpose to decrease the value of the company shares is also to reduce the price of the OpCo so the buyer can afford to buy it.Joelhttps://www.blogger.com/profile/09707861909013671695noreply@blogger.com