Sentences with phrase «preferential qualified dividend»

If the Bush tax cuts expire then all dividends will be taxed as ordinary income instead of preferential qualified dividend rates.

Not exact matches

On the other hand, if you file a separate return for the child, the tax rate on that portion of the income may be as low as zero, because of the preferential tax rates for qualified dividends and capital gain distributions.

Long term capital gains and qualified dividends are taxed under the same preferential rates for the alternative minimum tax as they are for regular tax.

These gains (and qualified dividends) receive the same preferential rate under the AMT as they do under the regular income tax.

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, goes through the rules, pointing out that rates of 0 %, 15 %, or 20 % can apply to qualified dividends on ordinary stocks that are eligible for preferential rates.

On the other hand, the dividends received by the investor do not receive preferential tax treatment as qualified dividend income.

Meanwhile, in your taxable account, you might favor stock investments that will be taxed at the preferential long - term capital gains rate, including any qualified dividends you receive.

The corporate structure of real estate investment trusts (REITs) ensures that they pay out at least 90 % of their taxable income in the form of a dividend in order to qualify for preferential tax treatment.

A qualified dividend is a type of dividend which may be subject to preferential tax rates, which are usually lower than regular income tax rates.

To qualify as a REIT and enjoy preferential tax treatment from the IRS, a REIT must annually distribute at least 90 percent of its taxable income in dividends to its shareholders.