My U.S. broker keeps telling me that dividends from MIND, CTI., are ordinary (non-qualified). And the broker (TDA) is not clear as to how TDA gets that information. I have tried looking at the annual reports, and they are not clear because they do not interpret US tax law. My understanding is that MIND (symbol MNDO) is an Israeli company and Israel is listed as having a "comprehensive income tax treaty" with the U.S., and the stock is traded on NASDAQ. The only other reason, it seems, that the the dividend would not be considered qualified is if MIND, CTI., were considered a passive foreign investment company (PFIC). I do not think MIND would be considered a PFIC. Can anyone help me understand why MIND divided might be nonqualifed?
Schedules K-2 and K-3 are actually 20 pages each. The IRS has stated that only pages that contain information need to be submitted. It's similar to Form 8949. You only submit the page with data.
My U.S. broker keeps telling me that dividends from MIND, CTI., are ordinary (non-qualified). And the broker (TDA) is not clear as to how TDA gets that information. I have tried looking at the annual reports, and they are not clear because they do not interpret US tax law. My understanding is that MIND (symbol MNDO) is an Israeli company and Israel is listed as having a "comprehensive income tax treaty" with the U.S., and the stock is traded on NASDAQ. The only other reason, it seems, that the the dividend would not be considered qualified is if MIND, CTI., were considered a passive foreign investment company (PFIC). I do not think MIND would be considered a PFIC. Can anyone help me understand why MIND divided might be nonqualifed?
Schedules K-2 and K-3 are actually 20 pages each. The IRS has stated that only pages that contain information need to be submitted. It's similar to Form 8949. You only submit the page with data.
Is there a good explanation why the K-3 form jumps from page
6 to page 8?
--
Carolyn Sturgis
palmer5456 on
I'm not sure that I have followed this thread from the beginning, so excuse me if this has already been discussed. There is a holding period that must be met to be considered qualified.
From the IRS:
To qualify for the lower tax rates, the taxpayer must now hold the dividend-paying stock for at least 61 days during the 121-day period (instead of the current 120-day period) beginning 60 days before the ex-dividend date - the first date that the buyer will not be entitled to receive that dividend.
Sent from my iPad
On Mar 8, 2022, at 3:41 PM, Carolyn Sturgis via bivio.com <user*32364500001@bivio.com> wrote:
You are correct
Carolyn
Sent from my iPhone
On Mar 8, 2022, at 4:14 PM, Peter Dunkelberger via bivio.com <user*26984900001@bivio.com> wrote:

Interesting. Perhaps there is confusion with the ticker symbol or the name of the company. When I enter MNDO at Edgar, everything says Israel.
My U.S. broker keeps telling me that dividends from MIND, CTI., are ordinary (non-qualified). And the broker (TDA) is not clear as to how TDA gets that information. I have tried looking at the annual reports, and they are not clear because they do not interpret US tax law. My understanding is that MIND (symbol MNDO) is an Israeli company and Israel is listed as having a "comprehensive income tax treaty" with the U.S., and the stock is traded on NASDAQ. The only other reason, it seems, that the the dividend would not be considered qualified is if MIND, CTI., were considered a passive foreign investment company (PFIC). I do not think MIND would be considered a PFIC. Can anyone help me understand why MIND divided might be nonqualifed?
Schedules K-2 and K-3 are actually 20 pages each. The IRS has stated that only pages that contain information need to be submitted. It's similar to Form 8949. You only submit the page with data.
I'm not sure that I have followed this thread from the beginning, so excuse me if this has already been discussed. There is a holding period that must be met to be considered qualified.
From the IRS:
To qualify for the lower tax rates, the taxpayer must now hold the dividend-paying stock for at least 61 days during the 121-day period (instead of the current 120-day period) beginning 60 days before the ex-dividend date - the first date that the buyer will not be entitled to receive that dividend.
My U.S. broker keeps telling me that dividends from MIND, CTI., are ordinary (non-qualified). And the broker (TDA) is not clear as to how TDA gets that information. I have tried looking at the annual reports, and they are not clear because they do not interpret US tax law. My understanding is that MIND (symbol MNDO) is an Israeli company and Israel is listed as having a "comprehensive income tax treaty" with the U.S., and the stock is traded on NASDAQ. The only other reason, it seems, that the the dividend would not be considered qualified is if MIND, CTI., were considered a passive foreign investment company (PFIC). I do not think MIND would be considered a PFIC. Can anyone help me understand why MIND divided might be nonqualifed?
Schedules K-2 and K-3 are actually 20 pages each. The IRS has stated that only pages that contain information need to be submitted. It's similar to Form 8949. You only submit the page with data.
I'm not sure that I have followed this thread from the beginning, so excuse me if this has already been discussed. There is a holding period that must be met to be considered qualified.
From the IRS:
To qualify for the lower tax rates, the taxpayer must now hold the dividend-paying stock for at least 61 days during the 121-day period (instead of the current 120-day period) beginning 60 days before the ex-dividend date - the first date that the buyer will not be entitled to receive that dividend.
My U.S. broker keeps telling me that dividends from MIND, CTI., are ordinary (non-qualified). And the broker (TDA) is not clear as to how TDA gets that information. I have tried looking at the annual reports, and they are not clear because they do not interpret US tax law. My understanding is that MIND (symbol MNDO) is an Israeli company and Israel is listed as having a "comprehensive income tax treaty" with the U.S., and the stock is traded on NASDAQ. The only other reason, it seems, that the the dividend would not be considered qualified is if MIND, CTI., were considered a passive foreign investment company (PFIC). I do not think MIND would be considered a PFIC. Can anyone help me understand why MIND divided might be nonqualifed?
Schedules K-2 and K-3 are actually 20 pages each. The IRS has stated that only pages that contain information need to be submitted. It's similar to Form 8949. You only submit the page with data.
Is there a good explanation why the K-3 form jumps from page
6 to page 8?
--
Carolyn Sturgis
Peter Dunkelberger on
Thanks Laurie. If you read that section and came up with a different answer, please let me know. My reading indicates that the dividends are qualified and that my broker is wrong in classifying these dividends as nonqualified.
Thanks again.
Peter Dunkelberger
On Wed, Mar 9, 2022 at 9:16 AM Laurie Frederiksen <laurie@bivio.biz> wrote:
The section titled:
Distributions on Ordinary shares
starting on page 70 in their most recent annual SEC filing discusses the taxation of their dividends:
I'm not sure that I have followed this thread from the beginning, so excuse me if this has already been discussed. There is a holding period that must be met to be considered qualified.
From the IRS:
To qualify for the lower tax rates, the taxpayer must now hold the dividend-paying stock for at least 61 days during the 121-day period (instead of the current 120-day period) beginning 60 days before the ex-dividend date - the first date that the buyer will not be entitled to receive that dividend.
My U.S. broker keeps telling me that dividends from MIND, CTI., are ordinary (non-qualified). And the broker (TDA) is not clear as to how TDA gets that information. I have tried looking at the annual reports, and they are not clear because they do not interpret US tax law. My understanding is that MIND (symbol MNDO) is an Israeli company and Israel is listed as having a "comprehensive income tax treaty" with the U.S., and the stock is traded on NASDAQ. The only other reason, it seems, that the the dividend would not be considered qualified is if MIND, CTI., were considered a passive foreign investment company (PFIC). I do not think MIND would be considered a PFIC. Can anyone help me understand why MIND divided might be nonqualifed?
Schedules K-2 and K-3 are actually 20 pages each. The IRS has stated that only pages that contain information need to be submitted. It's similar to Form 8949. You only submit the page with data.
Is there a good explanation why the K-3 form jumps from page
6 to page 8?
--
Carolyn Sturgis
Laurie Frederiksen on
I'd need to know more about why the broker is reporting them as they are.
You need to ask them this question. You may have to ask for their tax department to get a good answer.
If the company was classified as a PFIC and that caused the reporting you see, you will have other bigger issues that you'll need to work with an outside accountant to address.
Laurie Frederiksen Invest with your friends! www.bivio.com
Thanks Laurie. If you read that section and came up with a different answer, please let me know. My reading indicates that the dividends are qualified and that my broker is wrong in classifying these dividends as nonqualified.
Thanks again.
Peter Dunkelberger
On Wed, Mar 9, 2022 at 9:16 AM Laurie Frederiksen <laurie@bivio.biz> wrote:
The section titled:
Distributions on Ordinary shares
starting on page 70 in their most recent annual SEC filing discusses the taxation of their dividends:
I'm not sure that I have followed this thread from the beginning, so excuse me if this has already been discussed. There is a holding period that must be met to be considered qualified.
From the IRS:
To qualify for the lower tax rates, the taxpayer must now hold the dividend-paying stock for at least 61 days during the 121-day period (instead of the current 120-day period) beginning 60 days before the ex-dividend date - the first date that the buyer will not be entitled to receive that dividend.
My U.S. broker keeps telling me that dividends from MIND, CTI., are ordinary (non-qualified). And the broker (TDA) is not clear as to how TDA gets that information. I have tried looking at the annual reports, and they are not clear because they do not interpret US tax law. My understanding is that MIND (symbol MNDO) is an Israeli company and Israel is listed as having a "comprehensive income tax treaty" with the U.S., and the stock is traded on NASDAQ. The only other reason, it seems, that the the dividend would not be considered qualified is if MIND, CTI., were considered a passive foreign investment company (PFIC). I do not think MIND would be considered a PFIC. Can anyone help me understand why MIND divided might be nonqualifed?
Schedules K-2 and K-3 are actually 20 pages each. The IRS has stated that only pages that contain information need to be submitted. It's similar to Form 8949. You only submit the page with data.
Is there a good explanation why the K-3 form jumps from page
6 to page 8?
--
Carolyn Sturgis
Peter Dunkelberger on
Right. I have posed this question to TD Ameritrade already, and getting a helpful response is difficult. I have even written the MIND, CTI., investor relations department, and their response last year was that it is all in the annual report. They really cannot be definitive about US taxes, except telling one what happens "if...". Indeed, they might be a PFIC, but I would be really surprised. And it is difficult to get into the inner workings of TDA.
Thanks,
Peter
On Wed, Mar 9, 2022 at 1:03 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
I'd need to know more about why the broker is reporting them as they are.
You need to ask them this question. You may have to ask for their tax department to get a good answer.
If the company was classified as a PFIC and that caused the reporting you see, you will have other bigger issues that you'll need to work with an outside accountant to address.
Laurie Frederiksen Invest with your friends! www.bivio.com
Thanks Laurie. If you read that section and came up with a different answer, please let me know. My reading indicates that the dividends are qualified and that my broker is wrong in classifying these dividends as nonqualified.
Thanks again.
Peter Dunkelberger
On Wed, Mar 9, 2022 at 9:16 AM Laurie Frederiksen <laurie@bivio.biz> wrote:
The section titled:
Distributions on Ordinary shares
starting on page 70 in their most recent annual SEC filing discusses the taxation of their dividends:
I'm not sure that I have followed this thread from the beginning, so excuse me if this has already been discussed. There is a holding period that must be met to be considered qualified.
From the IRS:
To qualify for the lower tax rates, the taxpayer must now hold the dividend-paying stock for at least 61 days during the 121-day period (instead of the current 120-day period) beginning 60 days before the ex-dividend date - the first date that the buyer will not be entitled to receive that dividend.
My U.S. broker keeps telling me that dividends from MIND, CTI., are ordinary (non-qualified). And the broker (TDA) is not clear as to how TDA gets that information. I have tried looking at the annual reports, and they are not clear because they do not interpret US tax law. My understanding is that MIND (symbol MNDO) is an Israeli company and Israel is listed as having a "comprehensive income tax treaty" with the U.S., and the stock is traded on NASDAQ. The only other reason, it seems, that the the dividend would not be considered qualified is if MIND, CTI., were considered a passive foreign investment company (PFIC). I do not think MIND would be considered a PFIC. Can anyone help me understand why MIND divided might be nonqualifed?
Schedules K-2 and K-3 are actually 20 pages each. The IRS has stated that only pages that contain information need to be submitted. It's similar to Form 8949. You only submit the page with data.
Is there a good explanation why the K-3 form jumps from page
6 to page 8?
--
Carolyn Sturgis
Carolyn Sturgis on
Peter,
Do you have a local Schwab office. They are also your TDA office. Maybe they would be more helpful
Carolyn
Sent from my iPhone
On Mar 9, 2022, at 1:36 PM, Peter Dunkelberger via bivio.com <user*26984900001@bivio.com> wrote:

Right. I have posed this question to TD Ameritrade already, and getting a helpful response is difficult. I have even written the MIND, CTI., investor relations department, and their response last year was that it is all in the annual report. They really cannot be definitive about US taxes, except telling one what happens "if...". Indeed, they might be a PFIC, but I would be really surprised. And it is difficult to get into the inner workings of TDA.
Thanks,
Peter
On Wed, Mar 9, 2022 at 1:03 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
I'd need to know more about why the broker is reporting them as they are.
You need to ask them this question. You may have to ask for their tax department to get a good answer.
If the company was classified as a PFIC and that caused the reporting you see, you will have other bigger issues that you'll need to work with an outside accountant to address.
Laurie Frederiksen Invest with your friends! www.bivio.com
Thanks Laurie. If you read that section and came up with a different answer, please let me know. My reading indicates that the dividends are qualified and that my broker is wrong in classifying these dividends as nonqualified.
Thanks again.
Peter Dunkelberger
On Wed, Mar 9, 2022 at 9:16 AM Laurie Frederiksen <laurie@bivio.biz> wrote:
The section titled:
Distributions on Ordinary shares
starting on page 70 in their most recent annual SEC filing discusses the taxation of their dividends:
I'm not sure that I have followed this thread from the beginning, so excuse me if this has already been discussed. There is a holding period that must be met to be considered qualified.
From the IRS:
To qualify for the lower tax rates, the taxpayer must now hold the dividend-paying stock for at least 61 days during the 121-day period (instead of the current 120-day period) beginning 60 days before the ex-dividend date - the first date that the buyer will not be entitled to receive that dividend.
My U.S. broker keeps telling me that dividends from MIND, CTI., are ordinary (non-qualified). And the broker (TDA) is not clear as to how TDA gets that information. I have tried looking at the annual reports, and they are not clear because they do not interpret US tax law. My understanding is that MIND (symbol MNDO) is an Israeli company and Israel is listed as having a "comprehensive income tax treaty" with the U.S., and the stock is traded on NASDAQ. The only other reason, it seems, that the the dividend would not be considered qualified is if MIND, CTI., were considered a passive foreign investment company (PFIC). I do not think MIND would be considered a PFIC. Can anyone help me understand why MIND divided might be nonqualifed?
Schedules K-2 and K-3 are actually 20 pages each. The IRS has stated that only pages that contain information need to be submitted. It's similar to Form 8949. You only submit the page with data.
Right. I have posed this question to TD Ameritrade already, and getting a helpful response is difficult. I have even written the MIND, CTI., investor relations department, and their response last year was that it is all in the annual report. They really cannot be definitive about US taxes, except telling one what happens "if...". Indeed, they might be a PFIC, but I would be really surprised. And it is difficult to get into the inner workings of TDA.
Thanks,
Peter
On Wed, Mar 9, 2022 at 1:03 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
I'd need to know more about why the broker is reporting them as they are.
You need to ask them this question. You may have to ask for their tax department to get a good answer.
If the company was classified as a PFIC and that caused the reporting you see, you will have other bigger issues that you'll need to work with an outside accountant to address.
Laurie Frederiksen Invest with your friends! www.bivio.com
Thanks Laurie. If you read that section and came up with a different answer, please let me know. My reading indicates that the dividends are qualified and that my broker is wrong in classifying these dividends as nonqualified.
Thanks again.
Peter Dunkelberger
On Wed, Mar 9, 2022 at 9:16 AM Laurie Frederiksen <laurie@bivio.biz> wrote:
The section titled:
Distributions on Ordinary shares
starting on page 70 in their most recent annual SEC filing discusses the taxation of their dividends:
I'm not sure that I have followed this thread from the beginning, so excuse me if this has already been discussed. There is a holding period that must be met to be considered qualified.
From the IRS:
To qualify for the lower tax rates, the taxpayer must now hold the dividend-paying stock for at least 61 days during the 121-day period (instead of the current 120-day period) beginning 60 days before the ex-dividend date - the first date that the buyer will not be entitled to receive that dividend.
My U.S. broker keeps telling me that dividends from MIND, CTI., are ordinary (non-qualified). And the broker (TDA) is not clear as to how TDA gets that information. I have tried looking at the annual reports, and they are not clear because they do not interpret US tax law. My understanding is that MIND (symbol MNDO) is an Israeli company and Israel is listed as having a "comprehensive income tax treaty" with the U.S., and the stock is traded on NASDAQ. The only other reason, it seems, that the the dividend would not be considered qualified is if MIND, CTI., were considered a passive foreign investment company (PFIC). I do not think MIND would be considered a PFIC. Can anyone help me understand why MIND divided might be nonqualifed?
Schedules K-2 and K-3 are actually 20 pages each. The IRS has stated that only pages that contain information need to be submitted. It's similar to Form 8949. You only submit the page with data.