Capital Southwest Announces U.S. Federal Income Tax Treatment of 2024 Dividends
Rhea-AI Summary
Capital Southwest (Nasdaq: CSWC) has disclosed the U.S. federal income tax treatment of its 2024 dividends. The company paid total dividends of $2.53 per share for the tax year ended December 31, 2024. The dividends were comprised of 100% ordinary income, including net short-term capital gains.
The quarterly dividend payments were distributed as follows:
- March 29, 2024: $0.63 per share
- June 28, 2024: $0.63 per share
- September 30, 2024: $0.64 per share
- December 31, 2024: $0.63 per share
Notably, 92.89% of the dividends qualify as Interest-Related and Short-Term Capital Gain dividends, which are generally exempt from U.S. withholding tax for Non-U.S. Residents and Foreign Shareholders.
Positive
- Maintained consistent quarterly dividend payments throughout 2024
- 92.89% of dividends are tax-exempt for non-U.S. shareholders
- Total annual dividend of $2.53 per share distributed to shareholders
Negative
- None.
News Market Reaction – CSWC
On the day this news was published, CSWC declined 1.02%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
DALLAS, Jan. 31, 2025 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest” or the “Company”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, announced today the U.S. federal income tax treatment of its 2024 dividends.
U.S. Federal Income Tax Treatment of 2024 Dividends
Capital Southwest paid dividends totaling
The amounts shown in the table below represent the final classification of the Company’s 2024 dividends. This information supersedes any estimated information you may have received during the year. Calendar-year 2024 dividends are classified as follows:
| Form 1099-DIV Reporting | Box 1a | Box 1a and Box 1b | Box 2a | Non-U.S. Shareholder | Non-U.S. Shareholder | ||||||||||||
| Record Date | Payment Date | Distribution per Share | Ordinary Dividend Per Share (i) | Qualified Dividends Per Share (i), (ii) | Long-Term Capital Gain Per Share (iii) | % of Interest-Related and Short-Term Capital Gain (iv) | % of Distributions Exempt from U.S. Withholding Tax (v) | ||||||||||
| 03/15/24 | 03/29/24 | $ | 0.6300 | $ | 0.6300 | $ | - | $ | - | 92.89 | % | 92.89 | % | ||||
| 06/14/24 | 03/28/24 | $ | 0.6300 | $ | 0.6300 | $ | - | $ | - | 92.89 | % | 92.89 | % | ||||
| 09/13/24 | 09/30/24 | $ | 0.6400 | $ | 0.6400 | $ | - | $ | - | 92.89 | % | 92.89 | % | ||||
| 12/13/24 | 12/31/24 | $ | 0.6300 | $ | 0.6300 | $ | - | $ | - | 92.89 | % | 92.89 | % | ||||
| $ | 2.5300 | $ | 2.5300 | $ | - | $ | - | ||||||||||
| % of Total Dividend | |||||||||||||||||
| Paid Per Share | 100.00 | % | 100.00 | % | 0.00 | % | 0.00 | % | 92.89 | % | 92.89 | % | |||||
(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 Sections 871(k) and 881(e) under the Internal Revenue Code (the "Code").
(v) The percentages designate the portion of Capital Southwest's dividends received by Non-U.S. Residents and Foreign Corporation Shareholders that constitute Interest-Related Dividends, Short-Term Capital Gains Dividends, and Net Capital Gain Dividends to total amount of the dividends derived which generally are exempt from U.S. withholding tax for these periods for Non-U.S. Residents and Foreign Corporation Shareholders.
Non-U.S. residents and foreign corporation shareholders ("Non-U.S. Shareholders") in a regulated investment company ("RIC"), such as Capital Southwest, are exempt from U.S. withholding tax on both "interest-related" dividends and short-term capital gains in accordance with Sections 871(k) and 881(e) of the Code. In addition, Non-U.S. Shareholders in a RIC are also exempt from U.S. withholding tax on long-term capital gains. Approximately
Dividends distributed to Non-U.S. Shareholders may have been withheld to pay U.S. federal income tax. Non-U.S. Shareholders should contact their tax advisor with any questions regarding this information, and its application to any claim for refund of taxes paid to the U.S. Internal Revenue Service.
About Capital Southwest
Capital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company with approximately
Investor Relations Contact:
Michael S. Sarner, Chief Financial Officer
214-884-3829
FAQ
What is the total dividend amount paid by CSWC for 2024?
How are CSWC's 2024 dividends classified for tax purposes?
What percentage of CSWC's 2024 dividends are tax-exempt for non-U.S. shareholders?
What were CSWC's quarterly dividend payment dates and amounts in 2024?
Are there any qualified dividends in CSWC's 2024 distributions?
