0
What is the difference between ordinary dividends versus qualified dividends?
Wiki User
∙ 12y ago
Qualified dividends are taxed at flat capital gains tax rate (currently 15%) while ordinary dividends are taxed as ordinary income, depending on an individual's specific tax bracket. For dividends to be considered qualified, they have to be absent form the IRS unqualified dividend list and the underlying stock that pays the dividend must be held for a specified by IRS holding period (more than 60 days during the 120-day period beginning 60 days before the ex-dividend date, and for preferred stock, the holding period is 90 days during the 180-day period beginning 90 days before the stock's ex-dividend date). Examples of dividends that do not qualify are:
- Dividends paid on money market accounts
- Dividends from mutual funds attributable to interest and short-term capital gains
- Dividends from real estate investment trusts (REITs)
- Dividends received in your IRA
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
What's the difference between annuities and dividends?
An annuity is a type of investment. Dividends are amounts paid out to investors.
What is the difference between ordinary and extra ordinary?
EXTRA!!
What is a the major difference between a solution and an ordinary mixture?
The major difference between a solution and an ordinary mixture is that solution is homogeneous and an ordinary mixture is heterogeneous.
What is the difference between an ordinary grant and a tied grant?
The difference between a tied grant and an ordinary grant is that a tied grant has conditions and the ordinary grants don't!
What is the difference between ordinary prism and constant deviation prism?
difference between ordinary prism and constant deviation prism
The difference between dividend irrelevance theory and dividend relevance theory?
what are the difference between relevance and irrelevance theories of dividends
What is the difference between qualified and non qualified stock option plan?
I Dunnno
What is the difference between an ordinary transformer and resonant coupling energy transfer?
What is the difference between an ordinary transformer and resonant coupling energy transfer?
What is the similarities and difference between dividends and expenses?
A real differrence between dividends and expences is that dividends are being produced from a net account and from which use a firm could profit themselves.Expences are the daily outlays which are being used to comfort are daily life routines.
What is the difference between Sovereign immunity qualified charitable interspousal immunity?
explain the difference between sovereign immunity qualified immunity charitable immunity and interspousal immunity?
What is the difference between dividends and interest?
It is very important that the self directed investor understands the difference between dividends and interest.-Dividends- Dividends are generally paid to shareholders of a publicly traded company.-Interest- Earning interest would be from loaning your money. If you put your money in the bank or buy bonds you are actually loaning your money.The single most important reason for knowing the difference is tax. Dividends are taxed at a different rate than interest earned. It is suggested to seek professional accounting advice on how these tax rates affect you.
What is difference between qualified theft and theft?
qualified theft can earn more then theft..:P
