For the years 2001 and 2002, the Bank recorded certain state tax savings related to the consent dividends declared by the REIT.
The second charge was a $1,229,000 reduction related to a Real Estate Investment Trust (REIT) consent dividend deduction available to California banks for the tax years 2001 and 2002.
Form 973 - Corporation Claim for Deduction for Consent Dividends
Chapter 6 of the book addresses basis issues, and covers deemed dividends, the new investment adjustment regime, excess loss accounts, and consent dividends.
Also covered are elections relating to deemed dividends and consent dividends, section 338, the deferral of intercompany profits, apportioning the section 382 limitation, and dual consolidated losses (among others).
The first relates to other-than-temporarily impaired securities, the second relates to a California state income tax receivable generated by consent dividends declared by a Real Estate Investment Trust (REIT) available to California banks for the tax years of 2001 and 2002.
For the years 2001 and 2002 the Bank recorded certain state tax savings related to the consent dividends declared by the REIT.
Form 973, Corporation Claim for Deduction for Consent Dividends
This seems a harsh and unfair result, because E&P is not frozen as to distributions, redemptions, consent dividends
SCRA Section 223 would statutorily allow consent dividends
, which are currently permitted only by Regs.
Second, a deduction is allowed for consent dividends
, described in Sec.