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Qualified dividend status can save you a lot of money because you’ll only pay the long-term capital gains rate on those payouts, instead of the ordinary income tax rate. Ordinary Dividends
If you purchase stock on or before the ex-dividend date and then hold it for at least 61 days before the next dividend is paid, then the dividend is a qualified dividend. The stock must meet the ...
Dividends paid to investors by corporations come in two kinds – ordinary and qualified – and the difference has a large effect on the taxes that will be owed. Ordinary dividends are taxed as ...
From 2003 to 2007, qualified dividends were taxed at 15% or 5% depending on the individual's ordinary income tax bracket, and from 2008 to 2012, the tax rate on qualified dividends was reduced to 0% for taxpayers in the 10% and 15% ordinary income tax brackets, and starting in 2013 the rates on qualified dividends are 0%, 15% and 20%. The 20% ...
With effect from 1 June 2006 all equity oriented funds were kept out of the tax net but the tax rate was increased to 25% [23] for money market and liquid funds with effect from 1 April 2007. [ 33 ] Dividend income received by domestic companies until 31 March 1997 carried a deduction in computing the taxable income but the provision was ...
Certain categories, such as collectibles, remained taxed at existing rates, with a 28% cap. In addition, taxes on "qualified dividends" were reduced to the capital gains levels. "Qualified dividends" includes most income from non-foreign corporations, real estate investment trusts, and credit union and bank "dividends" that are nominally interest.
U.S. Senators Jay Rockefeller (D-West Virginia) and Roy Blunt (R-Missouri) introduced S.B. 1133, "New Markets Tax Credit Extension Act of 2013" in June 2013 to permanently add New Market Tax Credits to the Internal Revenue Code, however the program expired in January 2014 without the bill passing. [14] [15] The program does continue.
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