So one of the qualified dividend rules is that you must hold the investment for at least 60 days around the ex-div date (i.e. when the dividend is paid). So perhaps 45 days before the ex-div and 15 days after. Or 10 days before and 50 days after.What is the 60-day rule for qualified dividends?
What they may not be aware of, however, is the 60-day rule for qualified dividends. Stock dividends (including those distributed through a mutual fund) are either qualified with the IRS or non-qualified (like bond dividends.) The idea behind qualifying some dividends and not others is to encourage long-term investment.What is the minimum holding period for qualified dividends?
Holding period requirement. To enjoy the lower tax rate for the qualified dividends, investors need to meet a minimum holding period rule by the IRS. The amount of time differs for the type of stock you hold. For common stocks, the shares must be held for more than 60 days during a 121-day period that begins 60 days before the ex-dividend date.When does the holding period start on a stock dividend?
The holding period on a stock dividend typically begins the day after it is purchased. Understanding the holding period is important for determining qualified dividend tax treatment.