2007-02-20 08:08:34 · 2 answers · asked by bvalentic@sbcglobal.net 1 in Business & Finance ➔ Investing
Qualified dividends are taxed less and non qualified dividends. You get qualified dividends for holding the stock for over a year. It's part of Bush's tax break and the idea could be discontinued when Bush leaves office.
2007-02-20 08:14:35 · answer #1 · answered by gregory_dittman 7 · 0⤊ 0⤋
Sorry Greg, you are not quite correct. If you hold the stock over a year, the capital gains becomes the lesser taxed "long term." Qualified dividends are taxed at the long term capital rates of 5% or 15% depending on your tax bracket. Non qualified dividends are taxed at your earned income tax bracket. Dividends are qualified if 1) they are distributed by a company that has paid their corporate income taxes on them (not Real Estate Income Trusts, Limited Partnerships etc), and 2) you hold them for at least 61 days during the 121 days around the ex-dividend date. You may count the day your sell but not the day you buy.
2007-02-20 08:32:31 · answer #2 · answered by gosh137 6 · 3⤊ 0⤋