Hi Elizabeth,

I'm not sure about your question, but if it has something to do with
buy&hold and its cash-in-lieu maybe I can help.

Now you state:
>I have several small dividends that also have cash-in-lieu
>transactions. I use Buy&Hold and since you can purchase
>partial shares, many dividend transactions look like this :
>
>Dividend : 6.98
>Re-invent: 6.98 = X fractional shares @ Y cost
>Cash-in-Lieu .01

I hope you understand that this penny is not an extra dividend, but what's
leftover from the $6.98. You see, when Buy&Hold reinvested the $6.98 they
only took it out to a certain decimal point or amount. (It may be three
decimal places to the right.) Based on the market price, if that amount does
not cover the full amount, you get cash in leiu of the shares. The dividend
has not gone up. Now, I don't use Accountsync so I am not exactly sure how
that works. I do it manually. When I get a statement showing that there is
a cash in lieu, then I know that there is a dividend that has been adjusted.
  So, if its $6.98 and the cash in lieu is .01 then what has really been
invested is $6.97. So the dividend paid out remain $6.98. There has been no
rounding that has been done. Since, I don't use Accountsync I'm not sure how
they put that in for you, but this is how it should look.
Dividend- $6.98
Reinvested- $6.97/Y cost= Fractional shares
Cash In Lieu- $0.01

Hope this answers your question or helps.


>From: Elizabeth Darling <emd9930@bivio.com>
>Reply-To: "The Club Cafe" <club_cafe@bivio.com>
>To: club_cafe@bivio.com
>Subject: club_cafe: dividends reporting
>Date: Sat, 16 Feb 2002 05:17:20 GMT
>
>I have several small dividends that also have cash-in-lieu
>transactions. I use Buy&Hold and since you can purchase
>partial shares, many dividend transactions look like this :
>
>Dividend : 6.98
>Re-invent: 6.98 = X fractional shares @ Y cost
>Cash-in-Lieu .01
>
>This is on my monthly statements. On the tax forms most of
>the .01 cash-in-lieus are not listed. Since the re-invest
>and cash-in-lieu seems to be more than the actual dividend,
>this is probably why. Some type of round-off error. But,
>what should I have in my tax forms - the 1099 amounts, which
>means deleting some of the .01 transactions to get them
>right. Or use the bivio amounts that match the monthly
>statements - especially with account sync. I don't want to
>have to re-check too much with account sync or it defeats
>the purpose. What do you think - these missing pennies are
>driving me nuts!




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B Lancaster wrote:
> I hope you understand that this penny is not an extra dividend, but what's
> leftover from the $6.98. You see, when Buy&Hold reinvested the $6.98 they
> only took it out to a certain decimal point or amount. (It may be three
> decimal places to the right.) Based on the market price, if that amount does
> not cover the full amount, you get cash in leiu of the shares. The dividend
> has not gone up.
<snip> So, if its $6.98 and the cash in lieu is .01 then
what has really been
> invested is $6.97. So the dividend paid out remain $6.98. There has been no
> rounding that has been done. Since, I don't use Accountsync I'm not sure how
> they put that in for you, but this is how it should look.
> Dividend- $6.98
> Reinvested- $6.97/Y cost= Fractional shares
> Cash In Lieu- $0.01
This does answer my question. Thanks. I was confused by
the monthly statements of Buy&Hold. Sometimes the dividend
exactly matches up with a reinvestment - no cash in lieu.
Bivio handles that perfectly. But with the cash-in-lieu I
was confused and should have entered a straight dividend as
one transaction and a re-investment as a second transaction
- at least that is a way I get it to work. Then the 1 or 2
  cents would have been just leftover from the dividend
  reported as income. I fixed my dividend transactions
  that involved cash-in-lieu, so now I match my 1099-DIV.
  No more pennies off!