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Investors & landlords
The rules for dividends to be treated as qualified dividends are:
For common stock, a share must be held more than 60 days during the 121-day period beginning 60 days before the ex-dividend date. Under IRS guidelines, the ex-dividend date is the date after the dividend has been paid and processed and any new buyers would be eligible for future dividends. For preferred stock, the holding period is more than 90 days during the 181-day period beginning 90 days before the stock’s ex-dividend date.
The test is by comparison with the ex-dividend date which is fixed. At the time the dividend is paid, the dividend is qualified or non-qualified for each shareholder depending on his holding period. A non-qualified dividend does not become a qualified dividend with the passage of time.
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