consent dividend

consent dividend definition - business

consent dividend

The retained earnings that are credited to paid-in surplus by a personal holding company. The consent dividend is taxed to stockholders as an ordinary dividend; however, this tax liability is partially offset by the stockholders' increase in the cost basis of the stock by the same amount.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.