dividends receive after sale of stock

Gee, Norman on

We have sold a stock after the ex-dividend date and therefore we had automatic posting when the dividend was paid and additional shares were posted. This is what was posted on the transaction history at the brokerage. Apparently the broker posted a reverse of the stock reinvestment the next day, but Bivio did not pick up that transaction.

My question is how to treat these two transaction. Should we pretend it never happen and delete the first transaction? Should I manually enter a sale the next day for the shares that were taken away for the original purchase price?

Laurie Frederiksen on

Hi,

How you should proceed depends on what happened at your broker. Did the broker sell the extra shares? If so, you should record a sale.

If the broker just reversed the reinvestment purchase transaction, it is fine to delete it in bivio.

You don't want to delete the entry for the receipt of the dividend however. That is taxable income you did receive and need to report on your taxes.

Laurie Frederiksen
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On Wed, Jul 16, 2014 at 4:45 PM, Gee, Norman <Norman.Gee@lc.ca.gov> wrote:

We have sold a stock after the ex-dividend date and therefore we had automatic posting when the dividend was paid and additional shares were posted. This is what was posted on the transaction history at the brokerage. Apparently the broker posted a reverse of the stock reinvestment the next day, but Bivio did not pick up that transaction.

My question is how to treat these two transaction. Should we pretend it never happen and delete the first transaction? Should I manually enter a sale the next day for the shares that were taken away for the original purchase price?

Steve Foster on

We had a similar situation. We sold all our shares of a stock, then within 30 days got a dividend reinvested in .2453 shares of stock worth $12. Schwab didn't stop the reinvestment or give us just the cash dividend. Our problem now is what to do with it. It would cost us $8 or $9 to sell it. Any ideas on how to get rid of it?

Steve Foster

Circle of Friends

On Wednesday, July 16, 2014 2:27 PM, Laurie Frederiksen <laurie@bivio.biz> wrote:

Hi,

How you should proceed depends on what happened at your broker. Did the broker sell the extra shares? If so, you should record a sale.

If the broker just reversed the reinvestment purchase transaction, it is fine to delete it in bivio.

You don't want to delete the entry for the receipt of the dividend however. That is taxable income you did receive and need to report on your taxes.

Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend! www.facebook.com/bivio
Follow us on twitter! www.twitter.com/bivio
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On Wed, Jul 16, 2014 at 4:45 PM, Gee, Norman <Norman.Gee@lc.ca.gov> wrote:

We have sold a stock after the ex-dividend date and therefore we had automatic posting when the dividend was paid and additional shares were posted. This is what was posted on the transaction history at the brokerage. Apparently the broker posted a reverse of the stock reinvestment the next day, but Bivio did not pick up that transaction.

My question is how to treat these two transaction. Should we pretend it never happen and delete the first transaction? Should I manually enter a sale the next day for the shares that were taken away for the original purchase price?

Linda on

Schwab should have known better than to reinvest the dividend once you sold the stock. (Next time I suggest you don’t use the dividend reinvestment option or else call and tell them to issue the dividend in cash.) I would call them and make a stink about them reinvesting in that situation and maybe they will sell the shares for free. Threaten to take your business to Fidelity where you can get many FREE trades by just asking for them.

The other option is to wait for a good time to buy back 100 (or more) shares and at a later date, sell all the shares including the fractional shares at one time, but remember to stop the reinvestment next time. Caution – do not do this if you had a loss on the stock sale because it might trigger a wash sale if purchased too soon.

Linda

Pointe Players

From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Steve Foster
Sent: Thursday, July 17, 2014 2:20 AM
To: club_cafe@bivio.com
Subject: Re: [club_cafe] dividends receive after sale of stock

We had a similar situation. We sold all our shares of a stock, then within 30 days got a dividend reinvested in .2453 shares of stock worth $12. Schwab didn't stop the reinvestment or give us just the cash dividend. Our problem now is what to do with it. It would cost us $8 or $9 to sell it. Any ideas on how to get rid of it?

Steve Foster

Circle of Friends

On Wednesday, July 16, 2014 2:27 PM, Laurie Frederiksen <laurie@bivio.biz> wrote:

Hi,

How you should proceed depends on what happened at your broker. Did the broker sell the extra shares? If so, you should record a sale.

If the broker just reversed the reinvestment purchase transaction, it is fine to delete it in bivio.

You don't want to delete the entry for the receipt of the dividend however. That is taxable income you did receive and need to report on your taxes.

Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend! www.facebook.com/bivio
Follow us on twitter! www.twitter.com/bivio
Follow Us on Google+

Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe

On Wed, Jul 16, 2014 at 4:45 PM, Gee, Norman <Norman.Gee@lc.ca.gov> wrote:

We have sold a stock after the ex-dividend date and therefore we had automatic posting when the dividend was paid and additional shares were posted. This is what was posted on the transaction history at the brokerage. Apparently the broker posted a reverse of the stock reinvestment the next day, but Bivio did not pick up that transaction.

My question is how to treat these two transaction. Should we pretend it never happen and delete the first transaction? Should I manually enter a sale the next day for the shares that were taken away for the original purchase price?

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Marcia Meltzer on

Back when we were reinvesting (we stopped when it became an accounting nightmare) I would just call TDAmeritrade and they would sell the partial shares and not charge the fee. Hope you have as good an experience.

Marcia

$edurity Now

On Thu, Jul 17, 2014 at 2:19 AM, Steve Foster <foster.911@sbcglobal.net> wrote:

We had a similar situation. We sold all our shares of a stock, then within 30 days got a dividend reinvested in .2453 shares of stock worth $12. Schwab didn't stop the reinvestment or give us just the cash dividend. Our problem now is what to do with it. It would cost us $8 or $9 to sell it. Any ideas on how to get rid of it?

Steve Foster
Circle of Friends

On Wednesday, July 16, 2014 2:27 PM, Laurie Frederiksen <laurie@bivio.biz> wrote:

Hi,

How you should proceed depends on what happened at your broker. Did the broker sell the extra shares? If so, you should record a sale.

If the broker just reversed the reinvestment purchase transaction, it is fine to delete it in bivio.

You don't want to delete the entry for the receipt of the dividend however. That is taxable income you did receive and need to report on your taxes.

Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend! www.facebook.com/bivio
Follow us on twitter! www.twitter.com/bivio
Follow Us on Google+

Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe

On Wed, Jul 16, 2014 at 4:45 PM, Gee, Norman <Norman.Gee@lc.ca.gov> wrote:

We have sold a stock after the ex-dividend date and therefore we had automatic posting when the dividend was paid and additional shares were posted. This is what was posted on the transaction history at the brokerage. Apparently the broker posted a reverse of the stock reinvestment the next day, but Bivio did not pick up that transaction.

My question is how to treat these two transaction. Should we pretend it never happen and delete the first transaction? Should I manually enter a sale the next day for the shares that were taken away for the original purchase price?

Mike Jones on

How did reinvesting become an accounting nightmare? It seems pretty straightforward using Bivio although it makes for a long report when a position is closed.

Reinvesting a dividend implies that the stock paying the dividend is still worth purchasing, which may not be true in every case. If the partner following a stock indicates that it is no longer in the buy range, reinvestment could be halted. The broker would then direct the dividend into the money market pit where it would return an insulting interest rate but would be available to purchase stocks that ARE in the buy range.

Mike Jones

Wall$treet Wannabees

Bloomington, MN

From: Marcia Meltzer <marciainmd@gmail.com>
To: The Club Cafe <club_cafe@bivio.com>
Sent: Thursday, July 17, 2014 9:33 AM
Subject: Re: [club_cafe] dividends receive after sale of stock

Back when we were reinvesting (we stopped when it became an accounting nightmare) I would just call TDAmeritrade and they would sell the partial shares and not charge the fee. Hope you have as good an experience.

Marcia

$edurity Now

On Thu, Jul 17, 2014 at 2:19 AM, Steve Foster <foster.911@sbcglobal.net> wrote:

We had a similar situation. We sold all our shares of a stock, then within 30 days got a dividend reinvested in .2453 shares of stock worth $12. Schwab didn't stop the reinvestment or give us just the cash dividend. Our problem now is what to do with it. It would cost us $8 or $9 to sell it. Any ideas on how to get rid of it?

Steve Foster
Circle of Friends

On Wednesday, July 16, 2014 2:27 PM, Laurie Frederiksen <laurie@bivio.biz> wrote:

Hi,

How you should proceed depends on what happened at your broker. Did the broker sell the extra shares? If so, you should record a sale.

If the broker just reversed the reinvestment purchase transaction, it is fine to delete it in bivio.

You don't want to delete the entry for the receipt of the dividend however. That is taxable income you did receive and need to report on your taxes.

Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend! www.facebook.com/bivio
Follow us on twitter! www.twitter.com/bivio
Follow Us on Google+

Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe

On Wed, Jul 16, 2014 at 4:45 PM, Gee, Norman <Norman.Gee@lc.ca.gov> wrote:

We have sold a stock after the ex-dividend date and therefore we had automatic posting when the dividend was paid and additional shares were posted. This is what was posted on the transaction history at the brokerage. Apparently the broker posted a reverse of the stock reinvestment the next day, but Bivio did not pick up that transaction.

My question is how to treat these two transaction. Should we pretend it never happen and delete the first transaction? Should I manually enter a sale the next day for the shares that were taken away for the original purchase price?