Qualcomm (QCOM) and Dividend Reclassification

Laurie Frederiksen on

Those of you who owned QCOM during 2016 and 2017 have some extra work to do to adjust their dividends before you prepare taxes.

A portion of the Qualcomm (QCOM) dividends from both 2016 and 2017 has been reclassified as a "non-dividend" distribution. This means that a portion needs to be reclassified in bivio as a "Return of capital". This is not done automatically for you as the reclassification information is not available at the time you receive the dividend.

You can find the amount of the reclassifications in several places:

1. Your 2017 1099 form

2. Your 2016 1099 form (Or a corrected form)

3. On the QCOM website here: http://investor.qualcomm.com/taxtreatment.cfm

It is very important to make these adjustments as they affect the cost basis of your shares. If you don't make them, you will overpay on your taxes this year and underpay when you sell the shares. (And no, the IRS doesn't agree that 2 wrongs will make a right).

This is how you reclassify dividends in bivio:

https://www.bivio.com/site-help/bp/Reclassifying_Dividends_Help

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

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

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

Dennis McCarthy on

There is still an open question. My club has 2 qualified dividends from 2016 and 1 from 2017 that were reclassified to "return of capital". The TDA 1099 that we got included only the 2017 reclassifications, which I can match in bivio with your recommended adjustments--- but only for 2017. If I include 2016 adjustments in bivio, it will not match TDA for Cost Basis. TDA tells me there is one more wave of 1099's coming out by 2014 which may include an adjustment but their rep wasn't sure. They claim to have on "tax dept" to talk to. I'm trying to guard against submitting the Club and member tax forms for 2017 and then having to resubmit later. And I'm still not sure what has to be done for 2016--- that 1099 from TDA has not changed. Any recommendations?

Denny McCarthy

On February 12, 2018 at 8:44 AM Laurie Frederiksen <laurie@bivio.biz> wrote:

Those of you who owned QCOM during 2016 and 2017 have some extra work to do to adjust their dividends before you prepare taxes.
A portion of the Qualcomm (QCOM) dividends from both 2016 and 2017 has been reclassified as a "non-dividend" distribution. This means that a portion needs to be reclassified in bivio as a "Return of capital". This is not done automatically for you as the reclassification information is not available at the time you receive the dividend.
You can find the amount of the reclassifications in several places:
1. Your 2017 1099 form
2. Your 2016 1099 form (Or a corrected form)
3. On the QCOM website here: http://investor.qualcomm.com/taxtreatment.cfm
It is very important to make these adjustments as they affect the cost basis of your shares. If you don't make them, you will overpay on your taxes this year and underpay when you sell the shares. (And no, the IRS doesn't agree that 2 wrongs will make a right).
This is how you reclassify dividends in bivio:
https://www.bivio.com/site-help/bp/Reclassifying_Dividends_Help
Laurie Frederiksen
Invest with your friends!
www.bivio.com

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

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

Laurie Frederiksen on

Hi,

The adjustments for 2016 and 2017 need to be made in order to report the correct tax basis for the sale in 2017. This needs to be done for you to report correct taxes which is your first obligation. So you need to make the appropriate adjustments in bivio.

If the correct amount does not agree with the brokers form, we will have a way you can show on your taxes that their information was incorrect. You will need to contact us in support to do this once the tax program is released in the next few days.

On Mon, Feb 12, 2018 at 10:37 AM, Dennis McCarthy via bivio.com <user*34224700001@bivio.com> wrote:

There is still an open question. My club has 2 qualified dividends from 2016 and 1 from 2017 that were reclassified to "return of capital". The TDA 1099 that we got included only the 2017 reclassifications, which I can match in bivio with your recommended adjustments--- but only for 2017. If I include 2016 adjustments in bivio, it will not match TDA for Cost Basis. TDA tells me there is one more wave of 1099's coming out by 2014 which may include an adjustment but their rep wasn't sure. They claim to have on "tax dept" to talk to. I'm trying to guard against submitting the Club and member tax forms for 2017 and then having to resubmit later. And I'm still not sure what has to be done for 2016--- that 1099 from TDA has not changed. Any recommendations?

Denny McCarthy
On February 12, 2018 at 8:44 AM Laurie Frederiksen <laurie@bivio.biz> wrote:

Those of you who owned QCOM during 2016 and 2017 have some extra work to do to adjust their dividends before you prepare taxes.
A portion of the Qualcomm (QCOM) dividends from both 2016 and 2017 has been reclassified as a "non-dividend" distribution. This means that a portion needs to be reclassified in bivio as a "Return of capital". This is not done automatically for you as the reclassification information is not available at the time you receive the dividend.
You can find the amount of the reclassifications in several places:
1. Your 2017 1099 form
2. Your 2016 1099 form (Or a corrected form)
3. On the QCOM website here: http://investor.qualcomm.com/
It is very important to make these adjustments as they affect the cost basis of your shares. If you don't make them, you will overpay on your taxes this year and underpay when you sell the shares. (And no, the IRS doesn't agree that 2 wrongs will make a right).
This is how you reclassify dividends in bivio:
https://www.bivio.com/site-
Laurie Frederiksen
Invest with your friends!
www.bivio.com

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

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

Mail