More Fun with "Dividends" - Mutual Fund Distributions - club_cafe - bivio Investment Clubs

More Fun with "Dividends" - Mutual Fund Distributions

Laurie Frederiksen on

Here's another question we often get asked. Can bivio track mutual funds and ETF's? It's another one where the answer is usually yes but a qualified yes.

Why do we qualify our yes?

Here's what you can end up having to deal with at tax time:

Inline image 1

Each of the monthly "dividends" paid by this fund was reclassified on the 1099. The club treasurer now has the fun job of making 5 manual entries for each month to replace the original single "dividend" entry that was reported during the year.

Not a good way to spend tax season. You can see that your record keeping is much simpler if you stick to investing in common stocks.

Laurie Frederiksen
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VIA on

We recently purchased an ETF. Should I expect to have the same "fun" as with a mutual fund?

Thanks.......Jay

ira smilovitz on

It could be much worse. It could be so much worse that bivio won't be able to handle the tax accounting. Which ETF did you buy?

Ira Smilovitz

On Sat, Feb 22, 2014 at 1:47 PM, VIA <via95135@yahoo.com> wrote:

We recently purchased an ETF. Should I expect to have the same "fun" as with a mutual fund?

Thanks.......Jay

Laurie Frederiksen on

You can often find out what you might be getting into by going to the website for the investment. Look for a section about taxes.

If you do this before you make a purchase, you can find what you might be getting into before it's too late.

VIA on

Ira,

The ETF we recently purchased is:

Guggenheim Solar ETF (TAN)

Would appreciate your input as to what complications we might have with this investment vis-a-vis Bivio.

Thanks........Jay Sternin

From: ira smilovitz <ira.smilovitz@gmail.com>
To: "club_cafe@bivio.com" <club_cafe@bivio.com>
Sent: Saturday, February 22, 2014 11:00 AM
Subject: Re: [club_cafe] More Fun with "Dividends" - Mutual Fund Distributions

It could be much worse. It could be so much worse that bivio won't be able to handle the tax accounting. Which ETF did you buy?

Ira Smilovitz

On Sat, Feb 22, 2014 at 1:47 PM, VIA <via95135@yahoo.com> wrote:

We recently purchased an ETF. Should I expect to have the same "fun" as with a mutual fund?

Thanks.......Jay

ira smilovitz on

TAN shouldn't pose any significant issues within bivio. Its distributions are similar to a mutual fund, comprised of ordinary dividends, qualified dividends and capital gain distributions. You may have to edit some entries depending on how your broker reports the distributions as they happen.

Ira Smilovitz

On Fri, Feb 28, 2014 at 2:11 AM, VIA <via95135@yahoo.com> wrote:

Ira,

The ETF we recently purchased is:
Guggenheim Solar ETF (TAN)

Would appreciate your input as to what complications we might have with this investment vis-a-vis Bivio.

Thanks........Jay Sternin

From: ira smilovitz <ira.smilovitz@gmail.com>
To: "club_cafe@bivio.com" <club_cafe@bivio.com>
Sent: Saturday, February 22, 2014 11:00 AM
Subject: Re: [club_cafe] More Fun with "Dividends" - Mutual Fund Distributions

It could be much worse. It could be so much worse that bivio won't be able to handle the tax accounting. Which ETF did you buy?

Ira Smilovitz

On Sat, Feb 22, 2014 at 1:47 PM, VIA <via95135@yahoo.com> wrote:

We recently purchased an ETF. Should I expect to have the same "fun" as with a mutual fund?

Thanks.......Jay

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