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No. You pay tax on dividends, which is NOT always the same as capital gains tax rate. Cuurently it is pretty much the same. althoug only a few years back it was the same as ordinary income.

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Q: Cash dividends do you pay capital gains tax?
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Related questions

What type of investments pay cash dividends?

There are several types of investments that pay cash dividends. Some of these include: High Yield Investments, Stock Dividends, as well as Dividend ETF's.


Do you pay capital gains on inheretence?

Yes it is possible that you could have to pay some capital gains tax on the sale of some inherited capital assets.


What forms can dividends take?

A corporate board of directors has the authority to declare and pay dividends in the form of cash or stock.


Does capital gains tax apply if parent adds children to title of property?

Assuming the children did not pay for the property (whether in cash, goods, services, assumption of debt), capital gains tax does not apply. Gift tax may apply. However, when the property is sold, the children may owe a capital gains tax.


Can pay dividends even there is an unpaid subscribed capital stock?

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what do I pay in capital gains for 70,000 dollars ?

If I get a severance package check for $120,000.00 how much is withheld in taxes, I live in NY? what do i pay in capital gains on 100000.00 dollars


Do you pay capital gains tax on your first house?

Yes it is always possible that may be required to pay some capital gains tax on the sale of your first house.


Why would the bank want to monitor the dividend payment practices of the corporations it lends money to?

If a corporation pays out all of its cash in dividends, it may put itself in a position where it does not have enough cash to pay the loan payments to the bank. Excessive dividends may also be an indication that the management of the corporation does not have good judgment about retaining sufficient capital in the corporation to meet corporate capital needs.


Can capital be distributed as dividends?

Yes. All companies who pay dividends usually do so out of Retained Capital. Even Real Estate companies (REITS, private partnershiplps, etc) with losses "on the books" because of depreciation or other allowed tax deferrals/credits can pay dividends, and most do. Sometimes you see venture Capital companies take control of a company and pay a special dividend out of "capital."


Do people have to pay income tax on realized investments after they pay capital gains tax?

No. You will not pay income tax in addition to capital gains tax if I understand you correctly. However, capital gains tax for an individual is reported and paid on your 1040 income tax return. The only difference is that the rate for capital gains taxes is lower than the regular income tax levels.


Can you pay dividends from contributed capital?

Dividends are deducted of the retained earnings which is part of the contributed capital and that must be done according to the dividends policy The dividend policy of a firm relates to management's propensity to distribute earnings to stockholders.


Can you reinvest your capital gains?

Sure...but you pay tax on them anyway.