---
kind: "section"
citation: "20 C.F.R. § 404.1083"
title: "20"
number: "404.1083"
heading: "Dividends and interest."
url: "https://uscodex.org/cfr/20/404.1083"
---

# §404.1083. Dividends and interest.

- (a) The dividends you receive on shares of stock are excluded in determining your net earnings from self-employment, unless you are a dealer in stocks and securities and receive the dividends in the course of your trade or business.
- (b) The interest you receive on a bond, debenture, note, certificate, or other evidence of indebtedness issued with interest coupons or in registered form by any corporation (including one issued by a government or political subdivision) is excluded in determining your net earnings from self-employment, unless you are a dealer in stocks and securities and receive the interest in the course of your trade or business.
- (c) If you hold stocks or securities for investment or speculation purposes, any dividends and interest you receive that are excludable under paragraphs [(a)](#a) and [(b)](#b) of this section are excluded in determining your net earnings from self-employment, whether or not you are a dealer in stocks and securities.
- (d) A dealer in stocks or securities is a merchant with an established place of business who is regularly engaged in the business of purchasing stocks or securities and reselling them to customers. The dealer, as a merchant, buys stocks or securities and sells them to customers with a view to making a profit. Persons who buy and sell or hold stocks or securities for investment or speculation, regardless of whether the buying or selling constitutes a trade or business, are not dealers in stocks or securities.

## Notes

### Amendments

[45 FR 20075, Mar. 25, 1980; 45 FR 25060, Apr. 14, 1980]

### Authority

Authority: Secs. 202(v), 205(a), 209, 210, 211, 229(a), 230, 231, and 702(a)(5) of the Social Security Act (42 U.S.C. 402(v), 405(a), 409, 410, 411, 429(a), 430, 431, and 902(a)(5)) and 48 U.S.C.1801.

### Source

Source: 45 FR 20075, Mar. 27, 1980, unless otherwise noted.

### Amendments

[45 FR 20075, Mar. 25, 1980; 45 FR 25060, Apr. 14, 1980]