Dividend Distributions: Qualified and Non-Qualified

What this video covers

• The three requirements for a qualified dividend, and why "more than 60 days" is not the same as "60 days or more"
• How the 121-day window is centered on the ex-dividend date, with 60 days before and 60 days after
• The preferred stock exception: more than 90 days within a 181-day window beginning 90 days before the ex-dividend date
• Why dividends from Real Estate Investment Trusts (REITs), money market funds, and short positions are always non-qualified ordinary income
• What a return of capital is: a distribution in excess of earnings and profits, not immediately taxable
• How return of capital reduces cost basis dollar for dollar, then becomes capital gain once basis reaches zero
• The exam calculation trap: adjusted basis raises the future capital gain, not lowers it