Business
Capital Southwest Announces Federal Tax Treatment of 2019 Dividends and Deemed Distribution of $0.90 per share
DALLAS, Feb. 05, 2020 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest,” “CSWC” or the “Company”) (Nasdaq: CSWC), an internally managed
About this update from Capital Southwest Corporation
[{"type":"text","content":"DALLAS, Feb. 05, 2020 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest,” “CSWC” 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 tax treatment of its 2019 dividends and a $0.90 deemed distribution to shareholders of record as of December 31, 2019.\n Federal Tax Treatment of 2019 Dividends Capital Southwest paid dividends totaling $2.72 per share that are attributable to the tax year ended December 31, 2019, with approximately 52.08% of those dividends comprised of long-term capital gains and approximately 47.92% comprised of ordinary income. Further, the ordinary income was 40.97% taxed as ordinary income and 6.95% taxed as qualified dividends. Long-term capital gains and qualified dividends (subject to certain limitations) paid to non-corporate taxpayers (including individuals) qualify for favorable tax treatment under the Internal Revenue Code (\"IRC\") and, for 2019, will generally be subject to a maximum 20% U.S. federal income tax rate (plus a 3.8% Medicare surtax, if applicable). The Company has posted information regarding the U.S. federal income tax characteristics of its dividends that are attributable to 2019 (the \"2019 Form 1099 Information\") on its website (http://www.capitalsouthwest.com/tax-information). The amounts shown in the table below represent the final classification of the Company’s 2019 distributions. This information supersedes any estimated information you may have received during the year. Calendar-year 2019 distributions are classified as follows: Form 1099-DIV ReportingBox 1aBox 1a and Box 1bBox 2aNon-U.S. ShareholderNon-U.S. Shareholder Record DatePayment DateDistribution per ShareOrdinary 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) 03/15/1903/29/19$0.4800 $0.4104 $0.0696 $- 91.38%91.38% 06/14/1906/28/19$0.4900 $0.4189 $0.0711 $- 88.73%88.73% 09/16/1909/30/19$0.5000 $0.2850 $0.0483 $0.1667 59.15%92.49% 12/20/1912/31/19$1.2500 $- $- $1.2500 0.00%100.00% $ 2.7200 $ 1.1143 $ 0.1890 $ 1.4167 % of Total Dividend Paid Per Share 100.000% 40.966% 6.949%...