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Posted by Zigball on April 4, 2008, 12:16 am
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Can someone please explain to me what are Ordinary and Qualified
Dividends? I think that the qualified dividends are the ones that are
taxed on a 1040 tax return, if this is correct please elaborate and
explain why the ordinary is not taxed? If I am in error which is an
99.9% chance please elaborate on Ordinary and Qualified Dividends?
Thank you in advance, truly appreciated.
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Posted by Barry Margolin on April 4, 2008, 6:27 am
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In article
> Can someone please explain to me what are Ordinary and Qualified
> Dividends? I think that the qualified dividends are the ones that are
> taxed on a 1040 tax return, if this is correct please elaborate and
> explain why the ordinary is not taxed? If I am in error which is an
> 99.9% chance please elaborate on Ordinary and Qualified Dividends?
Both are taxed, but qualified dividends are taxed at your capital gains
tax rate rather than your regular income rate. Google is your friend:
http://taxes.about.com/od/taxglossary/g/dividends.htm
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Barry Margolin, barmar@alum.mit.edu
Arlington, MA
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Posted by Han on April 4, 2008, 7:44 am
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> http://taxes.about.com/od/taxglossary/g/dividends.htm
>
Which shows that English, even though a grammatically and structurally
simple language, has fallen victim to "interpretation" by lawyers and
legislators. The above reference is a very good example. Apparently, the
operative wording for "qualified" dividends is:
the investor "must have held the stock for more than 60 days during the
121-day period that begins 60 days before the ex-dividend date," as the IRS
explains in Publication 550. (sorry see above link fr the html link to the
IRS publication)
Now, the difference between long and short gains is less clear to me in
view of this sentence, but I am a biochemist, not a linguist, or tax
expert.
--
Best regards
Han
email address is invalid
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Rich Carreiro on April 4, 2008, 8:32 am
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> the investor "must have held the stock for more than 60 days during the
> 121-day period that begins 60 days before the ex-dividend date," as the IRS
> explains in Publication 550. (sorry see above link fr the html link to the
> IRS publication)
>
> Now, the difference between long and short gains is less clear to me in
> view of this sentence, but I am a biochemist, not a linguist, or tax
> expert.
Qualified dividends and capital gains have nothing to do with
each other, aside from long-term capital gains being taxed in
the rate structure as qualified dividends. That definition
of qualified dividends has no effect on the definition of long-term
gains, which continues to be "gain on the sale of a capital asset
with a holding period of more than a year".
--
Rich Carreiro rlc-news@rlcarr.com
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
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<< Copyright (2007) - All rights reserved. >>
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Posted by Han on April 4, 2008, 8:26 pm
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>
>> the investor "must have held the stock for more than 60 days during
>> the 121-day period that begins 60 days before the ex-dividend date,"
>> as the IRS explains in Publication 550. (sorry see above link fr the
>> html link to the IRS publication)
>>
>> Now, the difference between long and short gains is less clear to me
>> in view of this sentence, but I am a biochemist, not a linguist, or
>> tax expert.
>
> Qualified dividends and capital gains have nothing to do with
> each other, aside from long-term capital gains being taxed in
> the rate structure as qualified dividends. That definition
> of qualified dividends has no effect on the definition of long-term
> gains, which continues to be "gain on the sale of a capital asset
> with a holding period of more than a year".
>
Thanks, Rich, for the correction. I hope I didn't lead anyone astray.
--
Best regards
Han
email address is invalid
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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