19.26 Ark. Code R. 51-404(a)(1)
Current through Register Vol. 49, No. 9, September, 2024
The issuance of its own stock by a corporation as a dividend to its shareholders does not result in taxable income to such shareholders. However, any gain derived from the sale of such stock by the shareholders is taxable to the shareholders. Distributions received by shareholders from regulated investment companies are, by reason of the shareholder's option to receive the equivalent of cash or new stock, deemed to be a cash dividend and are therefore taxable.
19.26 Ark. Code R. 51-404(a)(1)