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Can you explain why some of our dividends synced from Folio
are Qualified and some are not from the same companies?
One reason will be that any dividends coming from stock that you have recently bought will be unqualified. I believe the cutoff is 6 months.

John Rice
ABODI Investment Club


On Saturday, November 22, 2014 1:50 PM, Susan J Mueller <suemue@comcast.net> wrote:


Can you explain why some of our dividends  synced from Folio
are Qualified and some are not from the same companies?


what's the difference between qualified and unqualified dividends? When I enter the dividends I have been entering them as qualified. Am I wrong?

On Sat, Nov 22, 2014 at 6:07 PM, John Rice <rice.j1969@att.net> wrote:
One reason will be that any dividends coming from stock that you have recently bought will be unqualified. I believe the cutoff is 6 months.

John Rice
ABODI Investment Club


On Saturday, November 22, 2014 1:50 PM, Susan J Mueller <suemue@comcast.net> wrote:


Can you explain why some of our dividends synced from Folio
are Qualified and some are not from the same companies?



They are taxed at different rates. Your brokerage statement should say whether they are qualified or unqualified. At least your year end statement should. Qualified dividends are taxed at a lower rate. There are other reasons for the difference but someone with better knowledge can answer in depth.

John Rice
ABODI Investment Club


On Saturday, November 22, 2014 3:15 PM, Gloria Graham <ggraham803@gmail.com> wrote:


what's the difference between qualified and unqualified dividends? When I enter the dividends I have been entering them as qualified. Am I wrong?

On Sat, Nov 22, 2014 at 6:07 PM, John Rice <rice.j1969@att.net> wrote:
One reason will be that any dividends coming from stock that you have recently bought will be unqualified. I believe the cutoff is 6 months.

John Rice
ABODI Investment Club


On Saturday, November 22, 2014 1:50 PM, Susan J Mueller <suemue@comcast.net> wrote:


Can you explain why some of our dividends  synced from Folio
are Qualified and some are not from the same companies?





Ok I need to check that out especially since we are disbanding.

On Nov 22, 2014 6:26 PM, "John Rice" <rice.j1969@att.net> wrote:
They are taxed at different rates. Your brokerage statement should say whether they are qualified or unqualified. At least your year end statement should. Qualified dividends are taxed at a lower rate. There are other reasons for the difference but someone with better knowledge can answer in depth.

John Rice
ABODI Investment Club


On Saturday, November 22, 2014 3:15 PM, Gloria Graham <ggraham803@gmail.com> wrote:


what's the difference between qualified and unqualified dividends? When I enter the dividends I have been entering them as qualified. Am I wrong?

On Sat, Nov 22, 2014 at 6:07 PM, John Rice <rice.j1969@att.net> wrote:
One reason will be that any dividends coming from stock that you have recently bought will be unqualified. I believe the cutoff is 6 months.

John Rice
ABODI Investment Club


On Saturday, November 22, 2014 1:50 PM, Susan J Mueller <suemue@comcast.net> wrote:


Can you explain why some of our dividends synced from Folio
are Qualified and some are not from the same companies?





Qualified dividends qualify for a lower tax rate. There are several tests that must be passed before a dividend can be considered qualified. One is that it must be paid by a qualifying company. This is the only one brokers run. If they indicate a dividend is qualified it has only passed this test.

There is also a holding period test a dividend must pass to be considered qualified. You must have held the stock that paid the dividend for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date.

bivio makes this check when you go through the dividend step of preparing your taxes. In that step, you are asked to confirm the ex-dividend dates for each dividend you received (The closest one is provided for you by default). Once you've confirmed this information, bivio can correctly classify your dividends on your tax forms.

Until then, whether they are entered in your records as qualified or ordinary doesn't make a difference. The classification is adjusted as needed at tax time.

Laurie Frederiksen
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