Is IBM a qualified dividend?

Answer 1

As long as you meet the holding period requirement, they would be qualified dividends.

Qualified Dividends

Qualified dividends are the ordinary dividends received in tax years beginning after 2002 that are subject to the same 5% or 15% maximum tax rate that applies to net capital gain. They are shown in box 1b of Form 1099 –DIV.

Qualified dividends are subject to the new 15% maximum capital gains rate if the applicable regular tax rate is 25% or higher. If the applicable regular tax rate is lower than 25%, qualified dividends are subject to the new 5% maximum capital gains rate.

To qualify for the 5% or 15% maximum rate, all of the following requirements must be met:

1. The dividends must have been paid by a U.S. corporation or a qualified foreign corporation. (See qualified foreign corporation.)
2. The dividends are not of the type listed later under Dividends that are not qualified dividends.
3. The proper holding period is met (discussed next).

Holding periods

Generally, to meet the holding period requirement, a shareholder must have held the stock for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date. The ex-dividend date is the first date following the declaration of a dividend on which the buyer of a stock will not receive the next dividend payment. Instead, the seller will get the dividend.

Answer 2

Yes, IBM is a US corporation and so its dividends are qualified dividends.

Answer 3

Yes