IraS1@aol.com wrote:
> In a message dated 2/2/2007 1:03:30 P.M. Eastern Standard Time,
> dthorne@bivio.com writes:
> Is it
> even possible for a common or preferred stock to have
> a LTCG
> Distribution????
>
>
> It's possible. A distribution classified as Return of Capital becomes a
> capital gain distribution when that distribution is larger than the cost basis
> in the shares. The capital gain distribution is then classified as short- or
> long-term based on the holding period for the shares.
>  
> How this applies to your situation, if at all, is unknown to me. A quick
> review of some of the readily available documents didn't turn up anything
> useful.
>  
> Ira Smilovitz

You have a good point Ira, I understand the capital gain
concept when you have Return of Capital in excess of Basis.

In this situation, I've NEVER received any Return of Capital
payments in the past that would reduce the basis, and this
payment does not exceed basis. Even the total amount of
dividends that have been received during my holding period
don't exceed the basis.

I believe that Ameritrade is in error, and my 1099 is
incorrect. But Ameritrade is unwilling to make the
correction. Which leaves me no other choice but to change my
records to reflect a LTCG instead of a dividend if I wish to
match the 1099.

I tried to do this in Bivio, but Bivio doesn't allow a
foreign tax expense for LTCG's. I suppose my next step would
be to contact support to make this entry for me.

Debi