Cody wrote:But what tax status do dividends recieve?
kaneohe wrote:Capital gains come when you sell appreciated securities. If they appreciate but you don't sell, they are unrealized gains and are not taxable. LTCGs (held >1yr) are typically taxed at 0% (if in 15% bracket) or 15% (if in higher brackets) (there may be higher rates for higher earners).
You can also get capital gain distributions from funds even if you don't sell them. They are taxed like LTCGs (sometimes they are ST and are taxed like ordinary income).
Dividends , if qualified , are taxed like LTCGs. If they are ordinary but not qualified, they are taxed like ordinary income.
(there may be higher rates for higher earners).
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