Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 06-29-2011, 09:58 PM
Junior Member
 
Join Date: Jun 2011
Posts: 1
Does Interest Expense change qualified Dividends?

AGI: 98,000

Qualified Dividends from IBM Stock: 3000

Interest Expense associated with purchase of IMB stock: 1000

The question is: Will the taxpayer receive preferential 15% capital gains tax rate on the entire 3000 or on 3000-1000=1000?

Thank you!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 07-01-2011, 12:23 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,236
The question is: Will the taxpayer receive preferential 15% capital gains tax rate on the entire 3000 or on 3000-1000=1000?”--->On the whole $3,000, the qualified dividends from IBM stock; Qualified dividends shown in box 1b of the Form 1099-DIV you receive are the ordinary dividends subject to the same 0% or 15% maximum tax rate that applies to net capital gain. You must have held the stock for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date. You need to file Qualified Dividends and Capital Gain Tax Worksheet on Sch D andeport iton 1040 lineyou’re your investment expense, $1,000, is deductible as miscellaneous itemized deductions on Schedule A of your tax return. When your investment portfolio includes both taxable and tax-exempt securities, you can deduct only those expenses that are related to the taxable securities.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Foreign dividends ferx66 Income 1 04-24-2011 04:31 PM
Refund of Interest Expense/Penalties for NOL dwhjr Income 1 10-31-2010 04:37 AM
Can I reimburse myself for interest expense from single member LLC? zonewolf Limited Liability Company 0 06-23-2010 03:16 PM
Interest and Dividends on 1041 ribbydibs Trusts and Gift Tax Returns 0 04-09-2009 09:15 AM
2008 Capital Gains & Qualified Dividends Tax Rate SurferDude Capital Gains 0 09-13-2008 01:16 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning