On November 3, 2022, Nova Corporation's Board of Directors declared a dividend of $2 per share...
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On November 3, 2022, Nova Corporation's Board of Directors declared a dividend of $2 per share for all stockholders of record on December 15, 2022. Calvin purchased 500 shares of Nova Corporation stock on December 5, 2022 so that he could get the dividend on December 15, 2022. He received the dividend and then sold his stock on December 25, 2022. (1) Explain how he will be taxed on this distribution. (as a qualified dividend, short term capital gain or ordinary income) (2) Explain why. What is the rule? On November 3, 2022, Nova Corporation's Board of Directors declared a dividend of $2 per share for all stockholders of record on December 15, 2022. Calvin purchased 500 shares of Nova Corporation stock on December 5, 2022 so that he could get the dividend on December 15, 2022. He received the dividend and then sold his stock on December 25, 2022. (1) Explain how he will be taxed on this distribution. (as a qualified dividend, short term capital gain or ordinary income) (2) Explain why. What is the rule?
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