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Old 06-29-2011, 09:58 PM
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Join Date: Jun 2011
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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!



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