Deemed Distribution of
The Company announced a deemed distribution of
The amounts shown in the table below represent the final classification of the Company’s 2022 dividends. This information supersedes any estimated information you may have received during the year. Calendar year 2022 distributions are classified as follows:
|Form 1099-DIV Reporting||Box 1a||Box 1a and Box 1b||Box 2a||Non-
Per Share (i), (ii)
Per Share (iii)
|% of Interest-Related
Capital Gain (iv)
|% of Dividend
Withholding Tax (v)
|% of Total Dividends Paid Per Share||100.000%||55.649%||3.711%||40.640%||55.692%||55.692%|
(i) Form 1099-DIV Box 1a includes the combined amounts of the columns "Ordinary Dividend Per Share" and "Qualified Dividends Per Share," contained within table above.
(ii) The portion of the dividend reported in Box 1a treated as Qualified Dividend is reported on Form 1099-DIV in Box 1b.
(iii) Net Capital Gain Dividend is reported on Form 1099-DIV in Box 2a.
(iv) The Company designates the above percentages of each of the total dividends by payment date as Interest-Related Dividend and Short-Term Capital Gain Dividend in accordance with IRC Sections 871(k) and 881(e).
(v) The percentages designate the portion of the Company’s dividends received by Non-
Dividends distributed to Non-
What is a deemed distribution?
The Company has elected to retain a portion of its net long-term capital gains and designate a deemed distribution of
What are the tax consequences of the deemed distribution to me as a stockholder?
The following example generally illustrates the
- The Company will pay
U.S.federal income tax of 21% on the undistributed net long-term capital gain on behalf of common stockholders in the amount of $0.3465per share.
- All stockholders will receive a
U.S.federal income tax credit equal to their allocable share of the 21% U.S.federal income tax paid by the Company on the undistributed long-term capital gain.
- Stockholders that are subject to
U.S.federal income tax generally can use that credit to offset their U.S.federal income tax liabilities for the stockholder’s taxable year in which the last day of the Company's taxable year falls (generally, the 2022 taxable year for stockholders that are individuals or otherwise have a calendar-year taxable year) and can claim a refund on their U.S.federal income tax return (for example on Form 1040) to the extent of any unused credit.
- Stockholders who hold their shares in tax-deferred accounts can receive a refund from the
IRSfor the taxes paid on their behalf by having their custodians file an IRS Form990-T with the IRS. It typically takes several months for custodians to receive the refund and deposit it into stockholders’ accounts.
- Other tax-exempt stockholders can also receive refunds for the taxes paid on their behalf on the deemed distribution by filing
- Stockholders that are not
U.S.tax residents should consult their own tax advisors as to the effect of the deemed distribution and the taxes paid on their behalf in their individual circumstances.
- Stockholders that are subject to
- Common stockholders will increase the adjusted tax basis in their stock by
$1.3035, equivalent to the deemed distribution of $1.6500per share less the $0.3465per share in taxes paid on their behalf.
Stockholders requiring further information about the impact of the deemed distribution on their state and/or local taxes should consult their tax advisors. The Company does not provide tax advice to its stockholders.
Why did the Company choose to designate a deemed distribution rather than declare a cash dividend at this time?
The Board of Directors, after careful review and deliberation, determined that it is in the best interest of the Company and its continued growth to designate a deemed distribution. The Company will re-deploy the retained capital into income producing debt assets, which will contribute to future net investment income growth.
What are the relevant distribution dates for the deemed distribution?
As there is no cash being paid out, there is no payment date for the deemed distribution. However, the deemed distribution of
Who will send me the tax information of the deemed distribution and when will I get this information?
The deemed distribution is deemed paid to the stockholders of record as of
If you own your shares in “street name,” your brokerage firm or bank will send you the tax information. If you own your shares directly in your name,
In addition, the Company has posted information regarding the 2022 deemed distribution (the "2022 Form 2439 Information") on its website (https://investor.fdus.com/stock-information/dividends-splits).
If I have questions about my individual tax situation, where can I get them answered?
The Company does not provide tax advice to its stockholders. Please consult your personal tax advisor. We are providing these questions and answers solely as a convenience to our stockholders.
This press release may contain certain forward-looking statements which are based upon current expectations and are inherently uncertain, including, but not limited to, statements about the future performance and financial condition of the Company and future net investment income growth. Any such statements, other than statements of historical fact, are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Company’s control, and that the Company may or may not have considered, such as changes in the financial and lending markets; the depending of the Company’s future success on the general economy and its impact on the industries that the Company invests; and the impact of interest rate volatility, including the decommissioning of LIBOR and rising interest rates; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from these estimates and projections of the future as a result of a number of factors related to changes in the markets in which the Company invests, changes in the financial, capital, and lending markets, and other factors described from time to time in the Company’s filings with the
|Company Contact:||Investor Relations Contact:|
|Chief Financial Officer||LHA|
|(847) 859-3940||(212) 838-3777|
Source: Fidus Investment Corporation