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What % of your equity based income are qualified dividends/long term capital gain
Old 03-06-2014, 03:10 PM   #1
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What % of your equity based income are qualified dividends/long term capital gain

As a part of my retirement planning xls I also simulate what my federal tax liabilities are. I would love to hear what part of people's taxable income that comes from equities (be it stocks, mutual funds, or etfs) ends up being qualified dividends/long term capital gains. Right now I assume 70% of my taxable income that can be attributed to my equity holdings are qualified dividends/long term capital gains and the rest dividends from ETFs or Mutual funds.
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Old 03-06-2014, 03:14 PM   #2
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almost all my dividends are qualified. The only exception is part of small cap value and part of international. I booked enough losses in 2009 to avoid taking any gains for a very long time. I don't understand "the rest dividends from ETFs or Mutual Funds." -- certainly most of my QD come from mutual funds and ETFs.
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Old 03-06-2014, 03:16 PM   #3
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...

I booked enough losses in 2009 to avoid taking any gains for a very long time.
Same here. And it still hurts to think about it.
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Old 03-06-2014, 04:09 PM   #4
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About 94% of my equity-based dividends are qualified. The 6% ordinary dividends mostly come from international equities.
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Old 03-06-2014, 04:34 PM   #5
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For me it is 100%. I have only 1 equity holding in my taxable account and all of its income every year since 2008 has been qualified dividends (except for 2012 which had a miniscule $12 of the dividends classified as non-qualified).
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Old 03-06-2014, 10:08 PM   #6
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I'm nominally all equities, with a slice and dice allocated total return portfolio with roughly equal growth and value, domestic and international. My yield is roughly 1.7% including fund STCG's. Qualified dividends were 47% of that. LTCG's from distributions was 2.6% of the portfolio (which does have a substantial percentage of ETF's with no LTCG distributions). STCG's and LTCG's due to sales are up to you.
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Old 03-07-2014, 05:53 AM   #7
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Close to zero.
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Old 03-07-2014, 07:23 AM   #8
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Haven't calculated it but there's virtually nothing that falls under nonqualified- probably only 2% or so.
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Old 03-07-2014, 08:56 AM   #9
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92% of our taxable equity dividends were QDI for 2013.
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Old 03-07-2014, 09:22 AM   #10
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~75% for us in 2013 but will probably be closer to 80% in 2014 as 2013 includes some ST bond fund dividends which we won't have in 2014. Our taxable portfolio is currently ~2/3 domestic equities and ~1/3 international equities.

Our foreign tax credit far exceeds the incremental tax on the unqualified dividends.
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Old 03-07-2014, 12:28 PM   #11
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Approximately 75% of our dividends we're qualified dividends in 2012 and 2013. We have a large carryover loss, so none of our capital gains are taxed under federal law.

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Old 03-07-2014, 04:52 PM   #12
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Same here. And it still hurts to think about it.
Why? I didn't change my investments, only my tax books. I am way ahead of where I was going in to the down tick in 2009.
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Old 03-07-2014, 09:44 PM   #13
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In 2013 68% of the withdrawals from our portfolio were qualified dividends or LTCGs.
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Old 03-08-2014, 08:39 AM   #14
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One aspect of my retirement strategy is to do a reallocation of my after tax assets to get away from equities that pay normal interest/dividends that would be taxed as 'ordinary income' and go with either qualified dividends or totally rely on appreciation for a hold and sell approach qualifying them for LTCG rates.
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Old 03-09-2014, 12:29 AM   #15
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As per 2013 filing, 2/3 of my dividend stream met the holding period and were qualified.

Over 90% of the capital gains were short term (holding period < one year). The taxman had a good year as this was all taxed at the top marginal rate plus the 3.8% special ACA tax.
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Old 03-09-2014, 11:34 AM   #16
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100% of our dividend income is qualified and currently taxed at 0% federal.
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Old 03-09-2014, 12:47 PM   #17
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What kind of funds pay out qualified dividends

Looks like Wellsley is paying me about 70% ordinary and the rest qualified.

Total Stock Market Index has about equivalent amounts for box 1a and 1b on the 1099-DIV.

Where do the qualified dividends get reported? Ordinary dividends are all being totaled for Schedule B but if qualified are subject to long term capital gains tax, shouldn't it be in Schedule D?

Not seeing it in Turbo Tax.
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Old 03-09-2014, 01:17 PM   #18
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Qualified dividends get reported to the left of the total dividends (same line) on both forms 1040 and 1040A. You complete Schedule B only if your total of ordinary dividends is at least $1,500.

As to how Qualified dividends are treated for tax purposes, there are worksheets in the instructions booket which determine the taxes due. I am not familiar with Turbo Tax but it should have those booklet worksheets in the program.
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Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

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