Variable Portfolio Funds
Dividends-Received Deduction for Corporate Investors
Updated for 2023
Corporate taxpayers are generally entitled to a deduction for dividends received from another domestic corporation. To determine the amount of dividends qualifying for this deduction, multiply the total ordinary dividends received during the calendar year 2023 by the percentage found in the table.
Please note that the dividends received deduction is subject to holding period requirements and other eligibility criteria and limitations.
Fund Name | Percentage to Apply to Ordinary Dividends* |
VP Avantis Global Equity Allocation Fund | 50.67% |
VP Balanced Fund1 | 47.60% |
VP Capital Appreciation Fund1 | 0.00% |
VP Disciplined Core Value Fund1 | 100.00% |
VP Growth Fund1 | 100.00% |
VP Inflation Protection Fund1 | 0.00% |
VP International Fund1 | 0.00% |
VP Large Company Value Fund1 | 86.89% |
VP Mid Cap Value Fund1 | 61.27% |
VP Ultra® Fund1 | 0.00% |
VP Value Fund1 | 64.21% |
* Ordinary dividends includes net investment income distributions and short-term capital gain distributions
American Century Investments Variable Portfolio Funds (VP Funds) are a series of investment choices available exclusively through variable annuity and variable universal life products. There are no plans to distribute VP Funds in any other way. Performance will vary based on the fees and expenses assessed with investments in variable insurance products. Those charges are disclosed in the separate account prospectus.
The VP Funds are managed by the same management team using the same objectives, approach, and philosophy as the retail fund. The VP portfolios are managed in a manner that under normal circumstances should produce similar performance. However, it is important to note that there are additional fees and charges assessed with investments in variable insurance products, those charges are disclosed in the separate account prospectus. The fees and charges will reduce returns when compared to that of the retail fund. There is no guarantee that the management team will achieve the same or similar performance in the future.
IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.
This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.