Question

Which of the following best describes qualified dividends? Dividend distributions that are considered a return of...

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.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

OPTION: Ordinary dividends that are subject to the same maximum tax rate that applies to net capital gain

EXPLANATION:

dividends are either ordinary or qualified. Qualified dividends are taxed at lower rate than the ordinary dividends which are taxed at same income tax rates applicable to capital gain.

Add a comment
Know the answer?
Add Answer to:
Which of the following best describes qualified dividends? Dividend distributions that are considered a return of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • O 10% Mark for follow up Question 24 of 75. Which of the following best describes...

    O 10% Mark for follow up Question 24 of 75. Which of the following best describes qualified dividends? O Dividend distributions that are considered a return of capital. o Ordinary dividends that are subject to the same maximum tax rate that applies to O Dividends that may be used to purchase additional shares in a corporation. O Dividends that are distributed when a corporation issues an additional amount o current shares owned by the taxpayer. Mark for follow up «...

  • O Automatically taxed at a lower capital gains tax rate. Treated as normal dividends and taxable...

    O Automatically taxed at a lower capital gains tax rate. Treated as normal dividends and taxable in the year received. O Not taxable until the fund is sold. O Not taxable until they are withdrawn from the fund. Mark for follow up Question 23 of 75. For individuals in the 10% and 15% brackets in 2018, the income from qualified dividends will be t 0 0%. O 5% O 8%. O 10%. Mark for follow up Question 24 of 75....

  • a. Respond to the following: In 2018, how are qualified dividends taxed? Qualified dividends are taxed...

    a. Respond to the following: In 2018, how are qualified dividends taxed? Qualified dividends are taxed at b. Complete the following paragraph that outlines the tax rates and application for qualifying depending on income and filing status. dividends. A single taxpayer with income below S36,600 has a capital gain rate of 0% $38,600 but below $425,800 pays at . Income over and the capital gains rate is ▼ for income above that. A Medicare tax on ▼ applies to high-income...

  • please use 2019 tax law . what are dividends and how are qualified dividends taxed differently...

    please use 2019 tax law . what are dividends and how are qualified dividends taxed differently from nonqualified dividends? 27. Dividend Income. (Obj. 4) Susan owns shares of stock in a corporation. In January 2020, she received a 1099-DIV reporting the following for 2019: Total ordinary dividends Qualified dividends included in total dividends $526 450 How are these dividends reported on Susan's tax return? r (SSN 842-11-6940), age 10, received taxable interest of $4,

  • Identify the additional amount of tax that will be due from the taxpayer on the dividends receive...

    Identify the additional amount of tax that will be due from the taxpayer on the dividends received in each of the scenarios below. TAX YEAR 2018 a. Masha (an individual taxpayer) owns 100 percent of Metro Fashion Corporation. In 2018, she receives a $100,000 dividend from the Corporation. Masha’s other sources of income this year are wages of $80,000 (thus, she is not considered a high income taxpayer). b. Tyson Corporation owns 100 percent of Lafayette Corporation, and both companies...

  • * More Info Capital Gains and Dividends Capital gains and losses are assigned to baskets. Five...

    * More Info Capital Gains and Dividends Capital gains and losses are assigned to baskets. Five possible tax rates will apply to most capital gains and losses: • Ordinary income tax rates (up to 37% in 2018) for gains on assets held one year or less 28% rate on collectibles gains and includible Sec. 1202 gains Preferential tax rates for gains on assets held for more than one year and qualified dividends based on the taxpayer's taxable income and filing...

  • The expected pretax return on three stocks is divided between dividends and capital gains in the...

    The expected pretax return on three stocks is divided between dividends and capital gains in the following way! Expected Expected Stock Dividend Capital Gain $10 50 Required: o. If each stock is priced at $195, what are the expected net percentage returns on each stock too) a pension fund that does not pay taxes, a corporation paying tax at 21% (the effective tax rate on dividends received by corporations is 6.3%), and (ii) an individual with an effective tax rate...

  • The expected pretax return on three stocks is divided between dividends and capital gains in the ...

    The expected pretax return on three stocks is divided between dividends and capital gains in the following way: Expected Dividend $0 Expected Capital Gain $10 Stock 10 a. If each stock is priced at $170, what are the expected net percentage returns on each stock to (i) a pension fund that does not pay taxes, (ii) a corporation paying tax at 35% (the effective tax rate on dividends received by corporations is 10.5%), and (iii) an individual with an effective...

  • Which of the following is the best definition for the ex-dividend date? A situation where dividends...

    Which of the following is the best definition for the ex-dividend date? A situation where dividends and capital gains are repackaged and sold separately from common shares. The date on which holders of record are designated to receive a dividend. The date on which the board of directors passes a resolution to pay a dividend. The date two business days before the date of record, establishing those individuals entitled to a dividend. The idea that individual investors can undo corporate...

  • The expected pretax return on three stocks is divided between dividends and capital gains in the...

    The expected pretax return on three stocks is divided between dividends and capital gains in the following way: Stock Expected Dividend Expected Capital Gain A $ 0 $ 10 B $5 $5 C $10 $0 a. If each stock is priced at $105, what are the expected net percentage returns on each stock to (i) a pension fund that does not pay taxes, (ii) a corporation paying tax at 21%.(the effective tax rate on dividends received by corporations is 6.3%,...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT