Our club owns shares of AmBev (ABV) and (ABV+C). For some
reason Ameritrade is calling one of the dividend payments
for 2006 a Long Term Capital Gain. I checked dividend
history on Ambev's website, and it doesn't show a LTCG for
that date. Instead, it states the payment is for Interest on
Own Capital.

Just to clarify.... Ambev is a Brazilian company. Their
distributions are always called a Dividend or Interest on
Own Capital in their dividend history. I assume the latter
is a Brazilian term for some type of Dividend payment,
because TD Ameritrade has always recorded it as a Dividend.
With the exception of this one payment.

Is it even possible for a common or preferred stock to have
a LTCG Distribution????

I have talked to 3 different people at Ameritrade. Two just
say it's not an error and they are not changing it. The
third person said yes it's possible for common stock to have
LTCG and that she has it on a couple of her stocks this
year. I attempted to explain to her this is not a mutual
fund, but a common stock. That conversation went nowhere.

If it really is a LTCG, how is this possible?

Debi