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Q: Is liquidating dividend a capital reserve?
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What is the difference between retained earnings and revenue reserve?

Capital reserve is capital set aside for specific future purpose such as building a new facility in the near future. It would be like you saving to buy a new a car. Reserve capital is money set aside for unforeseen issues. It's like a saving account or emergency fund that has no specific earmark.


What is a capital dividend?

A capital dividend is a special dividend paid to shareholders of a corporation out of capital gains income produced from the sale of property.


Is dividend ordinary income?

Most dividends are. However, long term capital gains distributions from a mutual fund are capital gains. Liquidating dividends and return-of-capital dividends can be capital gains. And, to make matters more confusing, some dividends, knows as "qualifying dividends," are taxed at long term capital gains rates even though they are not capital gains.


Is capital reserve a free reserve?

capital reserve is not a free reserve


What is a distributable reserve?

A non-distributable reserve is one which is not available for distribution to shareholders as a dividend.


What is reserve distribution?

A non-distributable reserve is one which is not available for distribution to shareholders as a dividend.


Is revaluation reserve a capital reserve?

Yes...revaluation reserve is a part of capital reserve.


Can i offset Capital Gain Dividend with capital loss?

If you are talking about a Long Term Capital Gain dividend from a mutual fund, the answer is yes.


What is dividend equalization reserve?

A distributable reserve, which is specifically set up to ensure that dividends remain stable despite, changes in earnings. If a company normally pays a dividend of 10 per cent per share, the directors might establish a dividend equalisation reserve so that this dividend level is protected against the eventuality of unprofitable years.


What is a non-distributable reserve?

A non-distributable reserve is one which is not available for distribution to shareholders as a dividend.


How can you utilise the general reserve?

By providing dividend to share holder


What is the effect of issuance of stock dividend to paid in capital?

Stock dividend changes the number of shares outstanding but it does not have any affect on amount of capital