Deemed Dividend
A deemed dividend is a distribution treated as a dividend for tax purposes even if it is not labeled that way.
Taxation terms for net investment income, dividends, investment interest expense, NUA, non-taxable distributions, and qualifying investments.
Investment Income, Dividends, and Tax Bases is the taxation area for dividends, capital gains, capital losses, investment income, investment interest, wash sales, tax-loss harvesting, and basis terms. These terms matter when they change after-tax portfolio return, gain recognition, loss use, holding-period treatment, dividend classification, or investment-tax reporting.
Use this page as orientation before relying on a narrower term. Check the broker statement, Form 1099-B, Schedule D support, basis record, holding period, dividend statement, wash-sale record, and tax year before treating a tax definition as decision-ready. Use Investment Tax Items for the broader branch, then move to the narrower page when a form, basis record, tax rule, transaction, income type, or filing position controls the result. Related context often appears in Investing, Financial Instruments, and Personal Finance, but this page keeps the focus on finance-facing tax effects rather than personal filing advice.
| Topic or term | Best use |
|---|---|
| Deemed Dividend | A deemed dividend is a distribution treated as a dividend for tax purposes even if it is not labeled that way. |
| Investment Interest Expense | Investment interest expense is the interest paid on money borrowed to purchase or carry investment property. |
| Net Investment Income | Net Investment Income (NII) is the amount by which investment income exceeds investment expenses. |
| Net Investment Income Tax (NIIT) | Net investment income tax is an additional tax on certain investment income for taxpayers above specified income thresholds. |
| Net Unrealized Appreciation (NUA) | Net unrealized appreciation is the untaxed gain in employer securities distributed from certain retirement plans. |
| Non-Qualifying Investment | A non-qualifying investment fails to meet rules for favored account, plan, or tax treatment. |
| Non-Taxable Distributions | Non-taxable distributions are payments that are not currently taxed, often because they return basis or qualify for an exclusion. |
| Qualified Dividend | A type of dividend that meets specific IRS criteria for favorable tax rates. |
| Section 1244 Stock | Section 1244 of the Internal Revenue Code (IRC) allows investors in small business corporations to receive special tax treatment. |
Selling a losing position may create a capital loss, but a wash-sale purchase can defer the loss and adjust basis instead of producing immediate tax benefit.
Use official sources for current rules, forms, thresholds, and filing details. This page avoids hard-coding tax figures that can change by year or jurisdiction.
Investment Income, Dividends, and Tax Bases is for financial education and vocabulary building. It is not personalized tax, legal, accounting, investment, or filing advice. Tax rules change and depend on specific facts, so readers should confirm current authority and consult a qualified tax professional for decisions or filings.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
A deemed dividend is a distribution treated as a dividend for tax purposes even if it is not labeled that way.
Investment interest expense is the interest paid on money borrowed to purchase or carry investment property.
Net Investment Income (NII) is the amount by which investment income exceeds investment expenses.
Net investment income tax is an additional tax on certain investment income for taxpayers above specified income thresholds.
Net unrealized appreciation is the untaxed gain in employer securities distributed from certain retirement plans.
A non-qualifying investment fails to meet rules for favored account, plan, or tax treatment.
Non-taxable distributions are payments that are not currently taxed, often because they return basis or qualify for an exclusion.
A type of dividend that meets specific IRS criteria for favorable tax rates.
Section 1244 of the Internal Revenue Code (IRC) allows investors in small business corporations to receive special tax treatment.