Hello and welcome to the session. In this session, we will be discussing the dividend received deduction. The dividend received deduction is specific to corporations. The main reason for having this deduction is to prevent triple taxation on dividends. When a corporation receives a dividend, it is paid out of retained earnings. To understand why this deduction is necessary, let's go through a quick example. Imagine a company that has revenues minus expenses, resulting in net income. In this case, revenues include dividends for corporations. The company then pays taxes on this net income, including taxes on the dividends. The remaining net income goes into retained earnings. If Company A pays some of its retained earnings and dividends to Company B, Company B will then have revenues that include the dividends received from Company A. After deducting expenses, Company B will have net income and will pay taxes on this net income, which includes the taxes paid on the dividends received from Company A. The same process continues if Company B pays dividends to Company C. Company C will include the dividends as revenue, deduct expenses, have net income, and pay taxes on this net income, which includes the dividends received from Company B. To prevent this triple taxation, the government allows corporations to have a dividend received deduction. The amount of deduction depends on the ownership level. If you own less than twenty percent of a company, you will receive a 70 percent deduction on the dividends received. So, if you receive $100 in dividends, you only have to pay taxes on $30. If you own 20 percent or more but less than 80 percent, you can get an 80 percent deduction on the dividends received. If you own 80 percent or more, the dividends are consolidated and eliminated,...