What is the difference between franked and unfranked dividends in the context of cryptocurrency?
Eka WibowoSep 21, 2020 · 5 years ago1 answers
Can you explain the distinction between franked and unfranked dividends in the context of cryptocurrency? How do these types of dividends work and what are the implications for cryptocurrency investors?
1 answers
- Reuba Is dumbSep 09, 2020 · 5 years agoFranked and unfranked dividends are terms commonly used in the traditional finance world, but they can also apply to cryptocurrency investments. Franked dividends are dividends that come with a tax credit, meaning that the company distributing the dividends has already paid tax on the profits. This can be beneficial for investors, as they may be eligible for a tax refund or credit. On the other hand, unfranked dividends are dividends that do not come with a tax credit. This means that investors may need to pay tax on the dividends they receive. When it comes to cryptocurrency investments, the distinction between franked and unfranked dividends is important to consider, as it can impact the overall return on investment and tax obligations of the investor.
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