Corporations Speed Dividend Payments To Avoid Tax Hit
by: Andrew Schneider, December 13, 2012 11:12:00 pm
It’s still possible Congress and the White House will reach a compromise to avert the so-called fiscal cliff. But that’s not a chance most businesses are willing to take. Dirk Moore is an attorney with Houston-based law firm Hughes Watters Askanase.
“A lot of corporations have sped up their process for declaring dividends and paying them out, so they get taxed under the lower rates of 2012.”
Oracle, Wal-Mart, and apparel company Hot Topic are just a few of those paying out fourth-quarter dividends before January 1st.
In addition, Moore says, partnerships are accelerating distribution payments that might otherwise have waited until 2013.