Are common stocks taxable?

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Any idea how the tax on common stock is calculated? First of all, do they get at all taxed? If they are, do you know how they are taxed?

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score 0 · Answer 1 · 2013-04-16T23:10:18+00:00

The dividends that are paid to the shareholders (that hold common stock) can be taxed as either income when they are classified as ordinary dividends or as lower capital gains if they are qualified. There are certain criteria that need to be met for a stock to be considered as qualified. The IRS website has all the criteria. You can search for the 550 publication and have a look.