Dividend entries on Tax Forms

mmoriarty on

Hello Laurie and others, What about capital gains from a REIT. I know you addressed this already but could you tell me again. The broker shows our REIT is listed as having distributed capital gains though we still own the stock. How do we account for it on our Bivio tax report?

On Monday 17/02/2014 at 4:14 pm, Laurie Frederiksen wrote:

Hi,

With the advent of our new 1099-DIV review report, many people are learning more about the transactions that need to be adjusted related to information they don't find out about until they get their 1099's.

Here are the responses to your questions:

Quest: Mattel Inc (MAT): broker lists as nondividend distribution
and bivo as qualified dividend. Should this be a return of
capital?

Answer: Yes. You need to have two dividend entries for each dividend that shows it was divided into two parts. Edit the original entry to show the amount that might be considered qualified. Then, use the Income button on the Accounting>Investments page to make a second "Return of capital" entry on the same date. Those are very important as they will adjust the cost basis of your shares. If not done, your capital gains won't be calculated correctly when you sell the shares.

Question:The remaining stocks are listed by the broker as qualified
dividend and by bivio as an ordinary dividend. Should each
of these be corrected to reflect broker transaction type?

Answer: It is very important to go through step 2 of the Tax preparation process. There is a series of dividend questions which will provide the information needed to correctly classify your dividends on your tax return. Once you've answered them, you'll see all dividends that should be qualified identified as such.

Hope that helps.

Laurie Frederiksen

Laurie Frederiksen on

Hi,

You use the "Income" button on the Accounting>Investments page to enter the different types of income you might have received from your REIT. There are choices on that form for Long Term Capital gains and Short term capital gains. You'd make the entries on the same date that you originally received the "distribution" and classify them like they are shown on your 1099. For a REIT, you will probably end up with several entries on each date you originally had only one dividend entry. The totals for the date should add up to the original amount shown in the single entry.

Laurie Frederiksen
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On Thu, Mar 6, 2014 at 8:38 AM, <mmoriarty@crocker.com> wrote:

Hello Laurie and others, What about capital gains from a REIT. I know you addressed this already but could you tell me again. The broker shows our REIT is listed as having distributed capital gains though we still own the stock. How do we account for it on our Bivio tax report?

On Monday 17/02/2014 at 4:14 pm, Laurie Frederiksen wrote:
Hi,

With the advent of our new 1099-DIV review report, many people are learning more about the transactions that need to be adjusted related to information they don't find out about until they get their 1099's.

Here are the responses to your questions:

Quest: Mattel Inc (MAT): broker lists as nondividend distribution
and bivo as qualified dividend. Should this be a return of
capital?

Answer: Yes. You need to have two dividend entries for each dividend that shows it was divided into two parts. Edit the original entry to show the amount that might be considered qualified. Then, use the Income button on the Accounting>Investments page to make a second "Return of capital" entry on the same date. Those are very important as they will adjust the cost basis of your shares. If not done, your capital gains won't be calculated correctly when you sell the shares.

Question:The remaining stocks are listed by the broker as qualified
dividend and by bivio as an ordinary dividend. Should each
of these be corrected to reflect broker transaction type?

Answer: It is very important to go through step 2 of the Tax preparation process. There is a series of dividend questions which will provide the information needed to correctly classify your dividends on your tax return. Once you've answered them, you'll see all dividends that should be qualified identified as such.

Hope that helps.

Laurie Frederiksen

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