Dividends paid to shareholders who hold both long and short positions do not qualify for the reduced tax rate available to individuals in certain years.

Question

Quizplus · Accepted Answer

Dividends paid to shareholders who hold both long and short positions are considered "unqualified" and do not qualify for the reduced tax rate because the IRS views the strategy as a way to reduce risk rather than a true investment in the company.

Dividends Paid to Shareholders Who Hold Both Long and Short