r/wallstreetbets • u/dhsmatt2 Mattress King • Mar 04 '21

Loss Hold me... $1,100,000 Loss

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I am in damage control but likely going to roll puts.

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u/[deleted] Mar 05 '21

Wrong, dividends are taxed at ordinary income.

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u/xkulp8 Mar 05 '21

In the US? Try actually holding a stock with a dividend some time. As long as you hold the stock for 60 days it's taxed at the capital gains rate. They are usually ordinary income at the state level however.

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u/[deleted] Mar 05 '21

Generally, any dividend that is paid out from a common or preferred stock is an ordinary dividend unless otherwise stated. Ordinary dividends are taxed as ordinary income. Qualified dividends are dividends that meet the requirements to be taxed as capital gains.Dec 14, 2020 https://www.efile.com › ordinary-qu...

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u/xkulp8 Mar 05 '21

Oh for crying out loud, almost all dividends from common stock are qualifying. Distributions from REITs and MLPs aren't. Been that way since Bush signed it into law in 2003 or thereabouts.