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Fidus Investment Corporation Announces Deemed Distribution of $1.65 per Share and U.S. Federal Income Tax Treatment of 2022 Dividends
EVANSTON, Ill., Jan. 31, 2023 (GLOBE NEWSWIRE) -- Fidus Investment Corporation (NASDAQ: FDUS) (“Fidus” or the “Company”), provider of customized debt and
About this update from Fidus Investment Corporation
[{"type":"text","content":"EVANSTON, Ill., Jan. 31, 2023 (GLOBE NEWSWIRE) -- Fidus Investment Corporation (NASDAQ: FDUS) (“Fidus” or the “Company”), provider of customized debt and equity financing solutions, primarily to lower middle-market companies based in the United States, announced today a $1.65 deemed distribution to shareholders of record as of December 31, 2022 and the U.S. federal income tax treatment of its 2022 dividends. Deemed Distribution of $1.65 per share The Company announced a deemed distribution of $1.65 per share (a total of $40,800,850) attributable to common stockholders of record as of the close of business on December 31, 2022. We have provided a number of questions and answers below regarding deemed distributions generally, as we believe the concept of deemed distributions may be new to many of our stockholders. U.S. Federal Income Tax Treatment of 2022 Dividends In addition, Fidus paid dividends totaling $2.00 per share that are attributable to the tax year ended December 31, 2022, with approximately 40.64% of those dividends comprised of long-term capital gains, approximately 55.65% of those dividends comprised of ordinary income, and approximately 3.71% of those dividends comprised of qualified dividends. Long-term capital gains and qualified dividends (subject to certain limitations) paid to non-corporate taxpayers (including individuals) may qualify for favorable treatment under the Internal Revenue Code of 1986, as amended (\"IRC\") and, for 2022, 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 the 2022 tax year (the \"2022 Form 1099 Information\") on its website (https://investor.fdus.com/stock-information/dividends-splits). 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 ReportingBox 1aBox 1a and Box 1bBox 2aNon-U.S. ShareholderNon-U.S. Shareholder Record DatePayment DateDividend Per ShareNon-Qualified Ordinary Dividend Per Share (i)Qualified Dividend Per Share (i), (ii)Capital Gains Per Share (iii)% of ...