Which of the following best describes qualified dividends? Dividend distribution

Question

Which of the following best describes qualified dividends? Dividend distributions that are considered a return of capital. Ordinary dividends that are subject to the same maximum tax rate that applies to net capital gain. Dividends that may be used to purchase additional shares in a corporation. Dividends that are distributed when a corporation issues an additional amount of stock, usually as a percentage of the current shares owned by the taxpayer. Which of the following best describes qualified dividends?

Explanation / Answer

Answer : Dividends that are distributed when a corporation issues an additional amount of stock, usually as a percentage of the current shares owned by the taxpayer.

A qualified dividend is a dividend that falls under capital gain tax rates that are lower than the Income tax rates on other dividends.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.