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.
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7) This degree of flexibility would have allowed taxpayers to designate high-taxed dividends not only to fill the base period amount, but also to make up the taxable portion of the total qualifying dividend amount.
Furthermore, a foreign corporation that was a FPHC in 2003 or 2004 could not distribute as a qualifying dividend its earnings and profits that were previously accumulated in years in which it was not a FPHC.
24402 deduction is limited by 24402(b), and the remainder of the qualifying dividend may be deductible under Sec.
In addition, under the 2003 Jobs and Growth Tax Relief Reconciliation Act, qualifying dividend income will be taxed at a maximum rate of 15% for most non-corporate taxpayers who meet certain holding period requirements.
The Fund estimates that virtually all of the income declared by the Fund in calendar year 2006 will be considered qualifying dividend income, subject to taxation at long-term capital gains rates no greater than 15%.
A portion of the distribution may be treated as ordinary income (derived from short-term capital gains) and qualifying dividend income for individuals.
A portion of the dividend distribution may be treated as ordinary income (derived from short-term capital gains) and qualifying dividend income for individuals.
The Fund estimates that virtually all of the income declared by the Fund in calendar year 2005 will be considered qualifying dividend income, subject to taxation at long-term capital gains rates no greater than 15%.
At this time, the Fund estimates that virtually all of the income paid out of the Fund in calendar year 2005 will be considered qualifying dividend income, subject to taxation at long-term capital gains rates no greater than 15%.
Section 302 of the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) reduced the income tax rate for qualifying dividends received by individuals to 15% (5% for taxpayers in the 10% mid 15% tax brackets).
The Eaton Vance survey highlights the importance of increasing dividend income and the reduced tax rate on qualifying dividends and the effects of these on investors' savings and investment decisions," stated Mr.
The Form 1099-DIVs will show that 100% of the distributions are taxable as qualifying dividends eligible for the 15% rate.