Capital Gains and Dividends

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Capital Gains and Dividends Under a "source" concept of capital gains, "the business" is the source from which gains flow; how does this differ from the "trust" concept of income from a business? The trust concept of income from a business indicates that the business is being managed in a particular way. When a business is in trust, there is a requirement that it be managed ethically (Unit 2, n.d.). That includes the income the business receives. This is very different from the way a standard business is run, because a trustee operates the business and is in charge of managing the income that comes from the business while it is in trust, along with other aspects of the business (Unit 2, n.d.). Overall, the income that arrives at a business while it is in trust is under much more scrutiny than income that comes into a standard business. While it is not taxed any differently than regular income, there is more scrutiny regarding it. Additionally, the capital gains concept is changed when the business is in trust, because the trustee and the business are not the same entity. Even if the business is making money, that money may not be able to be classified and taxed in the same way as it would be without being in trust (Unit 2, n.d.). What is the reasoning for excluding inter-corporate dividends (drd's)? Inter-corporate dividends are seen differently from other types of dividends, capital gains, and income. These kinds of dividends have been subject to double taxation

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