Our club purchased ADP on 3/5/2021 and received a qualified
dividend on 4/1/21. This doesn't meet the holding period for
a dividend to be classified as qualified. Can someone
enlighten me on why this might be right or wrong?
Thanks - scott
William F. Waskosky on
The ex-dividend date for ADP is March 11 2021, so if you purchased the stock on March 10 or earlier you qualify for the Dividend.
Bill
ClubNet
ira smilovitz on
It's not qualified YET because you haven't owned the shares for 60 days out of the 121 days surrounding the ex-dividend date. Once you meet the ownership requirement, the dividend will become a qualified dividend. This will work itself out when you prepare your 2021 tax return.
Our club purchased ADP on 3/5/2021 and received a qualified
dividend on 4/1/21. This doesn't meet the holding period for
a dividend to be classified as qualified. Can someone
enlighten me on why this might be right or wrong?
Thanks - scott
Scott Freeman on
Thank Ira & good morning. It seems wrong for TDAm to
characterize the dividend this way before it is. Account
Sync picks it up the way TDAm sends it.
Scott
ira smilovitz on
The broker isn't required to track the holding period requirement for a qualified dividend, but you are.
Thank Ira & good morning. It seems wrong for TDAm to
characterize the dividend this way before it is. Account
Sync picks it up the way TDAm sends it.
Scott
Daphne King on
What do you mean by, " This will work itself out when you prepare your 2021 tax return." How is this done? I'm really new to this process...
Daphne D. King, P.E.
Sent from my iPhone
On Apr 4, 2021, at 8:47 AM, ira smilovitz via bivio.com <user*2883400001@bivio.com> wrote:
It's not qualified YET because you haven't owned the shares for 60 days out of the 121 days surrounding the ex-dividend date. Once you meet the ownership requirement, the dividend will become a qualified dividend. This will work itself out when you prepare your 2021 tax return.
Our club purchased ADP on 3/5/2021 and received a qualified
dividend on 4/1/21. This doesn't meet the holding period for
a dividend to be classified as qualified. Can someone
enlighten me on why this might be right or wrong?
Thanks - scott
John Munn on
Daphne...
Dividends are qualified based on a couple of criteria. The holding period is one of those factors... you have to own the stock long enough for its dividends to be qualified. The software will automatically determine this from your purchase and sell dates and the broker's 1099 will also identify those dividends as being qualified, or not. But at year end, you need to verify the accuracy of bivio's software by reconciling bivio to your broker's statement.
It's not qualified YET because you haven't owned the shares for 60 days out of the 121 days surrounding the ex-dividend date. Once you meet the ownership requirement, the dividend will become a qualified dividend. This will work itself out when you prepare your 2021 tax return.
Our club purchased ADP on 3/5/2021 and received a qualified
dividend on 4/1/21. This doesn't meet the holding period for
a dividend to be classified as qualified. Can someone
enlighten me on why this might be right or wrong?
Thanks - scott
Daphne King on
Thanks! How do I verify the accuracy and where do I find criteria for dividend qualification?
Daphne D. King, P.E.
Sent from my iPhone
On Apr 4, 2021, at 1:07 PM, John Munn via bivio.com <user*223700001@bivio.com> wrote:
Daphne...
Dividends are qualified based on a couple of criteria. The holding period is one of those factors... you have to own the stock long enough for its dividends to be qualified. The software will automatically determine this from your purchase and sell dates and the broker's 1099 will also identify those dividends as being qualified, or not. But at year end, you need to verify the accuracy of bivio's software by reconciling bivio to your broker's statement.
It's not qualified YET because you haven't owned the shares for 60 days out of the 121 days surrounding the ex-dividend date. Once you meet the ownership requirement, the dividend will become a qualified dividend. This will work itself out when you prepare your 2021 tax return.
Our club purchased ADP on 3/5/2021 and received a qualified
dividend on 4/1/21. This doesn't meet the holding period for
a dividend to be classified as qualified. Can someone
enlighten me on why this might be right or wrong?
Thanks - scott
On Apr 4, 2021, at 2:43 PM, Daphne King via bivio.com <user*37814900001@bivio.com> wrote:
Thanks! How do I verify the accuracy and where do I find criteria for dividend qualification?
Daphne D. King, P.E.
Sent from my iPhone
On Apr 4, 2021, at 1:07 PM, John Munn via bivio.com <user*223700001@bivio.com> wrote:
Daphne...
Dividends are qualified based on a couple of criteria. The holding period is one of those factors... you have to own the stock long enough for its dividends to be qualified. The software will automatically determine this from your purchase and sell dates and the broker's 1099 will also identify those dividends as being qualified, or not. But at year end, you need to verify the accuracy of bivio's software by reconciling bivio to your broker's statement.
It's not qualified YET because you haven't owned the shares for 60 days out of the 121 days surrounding the ex-dividend date. Once you meet the ownership requirement, the dividend will become a qualified dividend. This will work itself out when you prepare your 2021 tax return.
Our club purchased ADP on 3/5/2021 and received a qualified
dividend on 4/1/21. This doesn't meet the holding period for
a dividend to be classified as qualified. Can someone
enlighten me on why this might be right or wrong?
Thanks - scott
Peter Dunkelberger on
I had the same problem with TDA for another company.
The best place to check for qualified dividend definitions is Publication 550 from the IRS.
TDA showed the dividend from an Israeli company as non-qualified, and TDA said they recorded the dividend the way the company presented it. However, the company, MIND CTO, meets all the requirements for paying a qualified dividend, and we met the holding period, and the dividend is not of the nature that would make it nonqualified, so I recorded it for our 1065 as a qualified dividend.
Dividends are qualified based on a couple of criteria. The holding period is one of those factors... you have to own the stock long enough for its dividends to be qualified. The software will automatically determine this from your purchase and sell dates and the broker's 1099 will also identify those dividends as being qualified, or not. But at year end, you need to verify the accuracy of bivio's software by reconciling bivio to your broker's statement.
It's not qualified YET because you haven't owned the shares for 60 days out of the 121 days surrounding the ex-dividend date. Once you meet the ownership requirement, the dividend will become a qualified dividend. This will work itself out when you prepare your 2021 tax return.
Our club purchased ADP on 3/5/2021 and received a qualified
dividend on 4/1/21. This doesn't meet the holding period for
a dividend to be classified as qualified. Can someone
enlighten me on why this might be right or wrong?
Thanks - scott
John Munn on
My approach was not to buck the 1099 which will be reported to the IRS and presumed by the IRS to be correct. The difference between the two truths of being qualified or not will be insignificant and divided among the partners and would overstate income. I don;t think the government will mind having folks over-report income.
I had the same problem with TDA for another company.
The best place to check for qualified dividend definitions is Publication 550 from the IRS.
TDA showed the dividend from an Israeli company as non-qualified, and TDA said they recorded the dividend the way the company presented it. However, the company, MIND CTO, meets all the requirements for paying a qualified dividend, and we met the holding period, and the dividend is not of the nature that would make it nonqualified, so I recorded it for our 1065 as a qualified dividend.
Dividends are qualified based on a couple of criteria. The holding period is one of those factors... you have to own the stock long enough for its dividends to be qualified. The software will automatically determine this from your purchase and sell dates and the broker's 1099 will also identify those dividends as being qualified, or not. But at year end, you need to verify the accuracy of bivio's software by reconciling bivio to your broker's statement.
It's not qualified YET because you haven't owned the shares for 60 days out of the 121 days surrounding the ex-dividend date. Once you meet the ownership requirement, the dividend will become a qualified dividend. This will work itself out when you prepare your 2021 tax return.
Our club purchased ADP on 3/5/2021 and received a qualified
dividend on 4/1/21. This doesn't meet the holding period for
a dividend to be classified as qualified. Can someone
enlighten me on why this might be right or wrong?
Thanks - scott