Hi,

I went from F-1 to H-1 in July 2008 and do not meet the substantial
Presence test.

If I file 1040NR, should I divide the qualified dividend and bank interest
Between f-1 and h-1 period to determine the effectively connected vs.
Not effectively connected income?

Also, I received capital gains from sale of ESPP while on H-1. Should I use
Schedule D? Or do I report the transaction on line 89 on pg 4 of 1040NR.

Thanks, Tanya

No, you do not divide. Check your bank statements for the dates when you received the interest or dividend.
Yes, for capital gains use schedule D.