qualified preferred dividend
Defined in 1 place of the United States Code.
The term “qualified preferred dividend” means any fixed dividend payable with respect to any share of stock which—
(I) provides for fixed preferred dividends payable not less frequently than annually, and
(II) is not in arrears as to dividends at the time the taxpayer acquires the stock.
Source
- 2013–201826 U.S.C. § 1059Internal Revenue Code · Corporate shareholders basis in stock reduced by nontaxed portion of extraordinary dividends · for purposes of this section
The term "qualified preferred dividend" means any fixed dividend payable with respect to any share of stock which—
(I) provides for fixed preferred dividends payable not less frequently than annually, and
(II) is not in arrears as to dividends at the time the taxpayer acquires the stock.
Such term shall not include any dividend payable with respect to any share of stock if the actual rate of return on such stock exceeds 15 percent.
Source
- 1994–present26 U.S.C. § 1059Internal Revenue Code · Corporate shareholders basis in stock reduced by nontaxed portion of extraordinary dividends · for purposes of this section