Qualified Dividend

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Qualified Dividend

In the United States, a dividend eligible for capital gains tax rather than income tax. This is advantageous to the investor as capital gains are usually taxed at a lower rate than ordinary income. To become a "qualified" dividend, the security from which the dividend derives must be held for at least 61 days during a certain 121-day period (for common stock) or for at least 90 days during a corresponding 181-day period. Also, the corporation paying the dividend must either be American or at least have stock readily tradable in American securities markets. See also: Ordinary dividend.
References in periodicals archive ?
Depending on political developments, taxpayers could face higher taxes on investment income in 2013, including a new Medicare tax on net investment income and the sunset of lower rates for capital gains and qualified dividends.
Furthermore, increasing the tax rates on capital gains and qualified dividends undermines America's ability to maintain its position as a worldwide economic leader.
Lower Tax Rates on Long-Term Capital Gains and Qualified Dividends
Noticeably absent from the list of QFCs that are ineligible to pay qualified dividends are controlled foreign corporations (CFC).
Nasdaq: TRMS) today announced it recently completed the mailing of IRS Forms 1099 to its shareholders reporting the classification of the special cash dividends paid during 2008 between ordinary dividends that are qualified dividends and non-dividend distributions that are a return of capital for federal income tax purposes.
09 per share of qualified dividends reflects qualified dividend income received by American Capital from portfolio companies in 2009.
1(g)(3), if a child's unearned income included net capital gains and/or qualified dividends, it was allocated between the parent and the child (because, under Sec.
24411(a) provides for a deduction of 75 percent of qualified dividends in the case of a water's-edge election.
None of the Series B preferred dividends paid by the Company were Qualified Dividends.
unitholders are encouraged to utilize the Qualified Dividends and Capital Gain Tax Worksheet of Form 1040 to determine the amount of tax that may be otherwise applicable.
With the 2003 reduction in tax rates for qualified dividends and net capital gains, this tax has become even thornier; tax professionals have to figure out how to apply the law and advise their clients.
The Fund will seek to take advantage of three potential sources of tax-advantaged income and gains: qualified dividends, index call options written and stock price appreciation.

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