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Capital gains is just the name for the tax rate for investment income. Qualified dividends are short term capital gains, ordinary dividends are long term capita
by Godel_unicode 8y ago
Capital gains is just the name for the tax rate for investment income. Qualified dividends are short term capital gains, ordinary dividends are long term capital gains.
https://www.irs.gov/instructions/i1099div#idm140075526633184 https://www.irs.gov/instructions/i1099div#idm140075526633184
- loeg 8y agoNo, to be precise a "capital gain" is a specific type of income that a dividend is not. Short term capital gain income is taxed as ordinary income. Long term capital gain income is taxed at a favorable rate called the "long-term capital gain (tax) rate." You have the rates for qualified and ordinary dividends backwards. Qualified dividends the ones that get taxed at the same lower rate as capital gains income (i.e., they "qualify" for preferential tax treatment).