Writing off dividends against capital losses

[BTDretire]

There is a $3,000 limit writing off capital losses against regular income.

Can I write off Non Qualified Dividends against capital losses?
ie. if I sell a stock and incur a $6,000 loss, can I write off $6,000 worth of
Non-Qualified dividends against that?

[seattlecyclone]

Nope. Capital losses count against capital gains first, with no limit. After that, $3,000 can count against your regular income. Any remaining loss rolls over to the next year. In many cases this is better than offsetting dividends because the dividends are taxed at a lower rate. I'd rather deduct $3,000 of my 28% taxed income next year than deduct $3,000 of my 15% taxed income this year.

[MDM]

once you hold the investment more than 1 year they turn into qualified dividends and are taxed at a lower rate.

The "more than 1 year" applies to capital gains, distinguishing long term from short term.

Distinguishing between qualified and non-qualified dividends is different: https://en.wikipedia.org/wiki/Qualified_dividend

[BTDretire]

Nope. Capital losses count against capital gains first, with no limit. After that, $3,000 can count against your regular income. Any remaining loss rolls over to the next year. In many cases this is better than offsetting dividends because the dividends are taxed at a lower rate. I'd rather deduct $3,000 of my 28% taxed income next year than deduct $3,000 of my 15% taxed income this year.

"Non qualified dividends are taxed at the same rates as ordinary income"
                                                Thanks

[seattlecyclone]

Ah, I missed that part. The answer is still no.

[BTDretire]

Nonqualified dividends are taxed at ordinary income rates and I don't think you can take losses against them.  Fortunately, once you hold the investment more than 1 year they turn into qualified dividends and are taxed at a lower rate.

 um, I have some REITs that give me non-qualified dividends for every year I've owned them.

[seattlecyclone]

Also, if you reinvest dividends/capital gains than the dividends you make off those shares can be non-qualified for a certain period of time too every year.

This is not true. Assuming your stock or fund ever pays qualified dividends, you will always get qualified dividends as long as you hold on to the shares for at least 60 days.