Certain dividends from foreign corporations can be qualified dividends for purposes of the preferential rate available to individuals.

Question

Quizplus · Accepted Answer

Certain dividends from foreign corporations can qualify as qualified dividends if the corporations are incorporated in a U.S. possession, in a country that has a comprehensive income tax treaty with the United States, or if the stock related to the dividends is readily tradable on an established securities market in the United States. This allows these dividends to be taxed at the lower capital gains rates rather than ordinary income rates.

Certain Dividends from Foreign Corporations Can Be Qualified Dividends for Purposes