- Joined
- Dec 16, 2011
- Messages
- 74,567
- Reaction score
- 32,720
- Location
- Florida
- Gender
- Male
- Political Leaning
- Liberal
Then maybe YOU can help me. Just so I understand, a company generates revenue from a change in ‘owners’ of money. If I own stock in a company and they make a profit isn’t some miniscule portion of that profit mine? The company pays tax on that profit (including my miniscule part). They then MAY distribute any remaining in dividend (which represents my miniscule part of the original PRETAX profit) to me which I pay tax on. How is the ORIGINAL transfer of money not taxed twice?
Sorry wrong answer. The dividends you received were expenses that your "company" deducted from their profits and reduced their taxes. So you paid taxes on them since to you they were "profits". The money was taxed only one time.