dividends

Linda on

There is some misinformation here about qualified dividends. Most stocks, but not all yield qualified dividends if you hold the stock for at least 30 days within the 60 day period inclusive of the dividend payout date. (I believe it is 30 days, but certainly not more than 60 days.) Dividends from funds that hold bonds are not qualified since that income is really interest. Dividends from REITS are not qualified. I suggest you do an Internet search for qualified dividends for the definition. The 1099 div will tell you the qualified dividend amount.

Linda

Pointe Players

Sent via the Samsung GALAXY S(R)4, an AT&T 4G LTE smartphone

-------- Original message --------

From: Gloria Graham <ggraham803@gmail.com>

Date:11/22/2014 6:54 PM (GMT-05:00)

To: club_cafe@bivio.com

Cc:

Subject: Re: [club_cafe] dividends

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?

Laurie Frederiksen on

Dear Linda,

The information which I provided was correct. You will also find it in the IRS description of qualified dividends which you will find here:

Qualified Dividends

It is not true that if a broker shows a dividend as qualified on a 1099 that it meets all the tests to be considered qualified. As I indicated, if brokers find it "impractical" to run the holding period check, they do not have to use it to determine what they report as qualified. In our experience most of them don't run that check.

Here is the wording from the 1099-DIV instructions that lets them report the way they do:

"Enter the portion of the dividends in box 1a that qualify for the reduced capital gains rates. Include dividends for which it is impractical to determine if the section 1(h)(11)(B)(iii) holding period requirement has been met."

That doesn't mean, however that you don't have to run this check to report the dividend amounts correctly. That is part of the service that bivio provides for your club.

Laurie Frederiksen
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Gloria Graham on

Thanks

On Nov 23, 2014 4:30 PM, "Linda" <wiltse@optonline.net> wrote:

There is some misinformation here about qualified dividends. Most stocks, but not all yield qualified dividends if you hold the stock for at least 30 days within the 60 day period inclusive of the dividend payout date. (I believe it is 30 days, but certainly not more than 60 days.) Dividends from funds that hold bonds are not qualified since that income is really interest. Dividends from REITS are not qualified. I suggest you do an Internet search for qualified dividends for the definition. The 1099 div will tell you the qualified dividend amount.
Linda
Pointe Players

Sent via the Samsung GALAXY S(R)4, an AT&T 4G LTE smartphone

-------- Original message --------
From: Gloria Graham <ggraham803@gmail.com>
Date:11/22/2014 6:54 PM (GMT-05:00)
To: club_cafe@bivio.com
Cc:
Subject: Re: [club_cafe] dividends

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?

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