Tax & EvaluationCâu 94 / 110
Qualified dividends distributed by an equity mutual fund to a taxable account are generally taxed:
a.At the lower long-term capital gains rates, if the applicable holding period requirements are met
b.At the investor's ordinary income rate in all cases
c.Not at all, because the fund already paid tax on them
d.Only when the investor eventually sells the fund shares
Giải thích
Dividends that meet the qualified dividend requirements receive the favorable long-term capital gains rates rather than ordinary income treatment. Non-qualified dividends, including most interest income passed through by bond funds, are taxed as ordinary income. A regulated investment company generally pays no entity-level tax on distributed income, so the shareholder is the taxpayer.
Trích dẫn luật: Internal Revenue CodeLuyện miễn phí toàn bộ 110 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- An investor bought fund shares four months ago and now receives a capital gains distribution from the fund. How is that distribution taxed?
- A fund makes a distribution characterized as a return of capital. The immediate effect on the shareholder is:
- An investor automatically reinvests $3,000 of taxable fund distributions over several years. The effect on cost basis is that basis:
- An investor sells fund shares at a $4,000 loss on March 10 and buys shares of the same fund on March 25. The result is:
- Which cost basis method applies to mutual fund shares if the shareholder makes no election?
- An investor exchanges shares of a growth fund for shares of a bond fund within the same fund family at net asset value. For tax purposes, this exchange is:
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