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Technology Stocks : Dell Technologies Inc.
DELL 133.78-0.1%Nov 14 9:30 AM EST

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To: TigerPaw who wrote (170631)8/16/2002 8:01:50 PM
From: mepci  Read Replies (1) of 176387
 
TP: Great question. One has to realize that a corporation is separate entity (non-natural person) as opposed to you ( a natural person. If you make money on some transactions and if i lend you the money for making that money, the money I make on the transaction should be taxable.
This is the philosophy behind counting dividends as income.
the more fairer treatment is to reduce the buy-basis price on your stock by the amount of dividend just like what you can do when you write a covered call that expires (there are issues here too).
This solution was not possible before, because it will be an accounting nightmare without proper computer support.
is time that we abandon the archaic systems in accounting and capture transactions at source and model the posting from the journals in the correct way.
Dividends should first be deducted from your principle first and added as income only after you exhaust the return of all principal investment.
This seems to be too complicated for our pea-brain professionals in FASB, SEC, auditors, accountants and CFOs.
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