What are the requirements for a cryptocurrency to be considered a qualified dividend?

1 answers

• a51zxDec 12, 2024 · 6 months ago
  In order for a cryptocurrency to be considered a qualified dividend, it must meet certain requirements. Firstly, it must be issued by a U.S. corporation or a qualified foreign corporation. Secondly, the cryptocurrency must be held for a specific holding period, which is typically more than 60 days during the 121-day period that begins 60 days before the ex-dividend date. Thirdly, the cryptocurrency must not be classified as a collectible, such as certain types of precious metals. Lastly, the dividend must be paid in cash or other property, and the cryptocurrency must not be received as a dividend in-kind. By fulfilling these requirements, a cryptocurrency can be deemed a qualified dividend for tax purposes.
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