Bivio newbie needs help!

I'm afraid I'm still confused regarding the difference
between the "Dividend" and "Qualified Dividend" columns on
the bivio "Member Tax Allocations" Report for tax year 2006.

It is my understanding that "Qualified Dividends" are those
dividends which qualify for capital gains tax rates.
Generally all domestic common stock dividends are qualifying
if you own the underlying shares for more than 60 days in
the 121 day window surrounding the ex-dividend date.  If all
of our dividends are Qualified Dividends from our
securities, then why would the "Dividend" column in bivio
have any numbers other than $0.00?  Wouldn't all dividends
simply appear in the Qualified Dividend column?
In our case, how else would a member receive a "Dividend" if
it is not a "Qualified Dividend"?  Do I need to do something
differently when I enter dividend data?

When the club completes its tax return and your members complete their personal tax returns, you need both the amount of ordinary dividends and the amount of qualified dividends. Ordinary dividends are reported on the front of Form 1040 and contribute to AGI. Qualified dividends are entitled to a reduced tax rate and are entered on the Qualified Dividends and Capital Gains Tax Worksheet. Both numbers are reported on Schedules K and K-1 of Form 1065. Often the two numbers will be the same, but not always. Typical sources of nonqualified dividends, in addition to those that fail to qualify because of holding period rules, are money market dividends, REIT distributions, and some mutual fund distributions.

 

Ira Smilovitz