club_cafe: Re: Club Tax Interview

iras1 on

Go to the accounting>Investments screen. To the right of the listing for XLF, click on the "info" link. At the bottom of the page, set "qualified dividend" to "not qualified".

You can then edit the individual transactions and make some or some part of them qualifying.

Ira Smilovitz

In a message dated 02/05/08 9:44:29 A.M. Eastern Standard Time, clubyahoo@bivio.com writes:

Jim Thomas wrote:
> > XLF is a qualifying stock.
>
> XLF is an EFT, not a stock. It does not pay "dividends", it
> pays "income dividend distributions", which are not
> necessarily all "qualified" dividends.
> http://www.sectorspdr.com/spdr/distributions/?symbol=XLF
>
> The following is quoted from from
> http://seekingalpha.com/article/17023-do-your-etf-dividends-qualify-for-the-15-rule
>
> "It's easy for investors who held their dividend paying
> equity ETF the requisite period to mistakenly assume their
> distributions qualify for the favorable tax treatment.
> Caveat Emptor! The rules apply to each individual holding of
> the fund, and of course the fund's tax liability is passed
> through to you. In order for you to get favorable tax
> treatment, the shares of stock must be held by the fund
> according to the stated rules, have been distributed to you
> AND you had to hold the shares of the fund for at least 61
> days out of the 121 day period that began 60 days before the
> fund's ex-dividend date. Confused yet?"
>
> How do you handle this in club accounting? I imagine you'll
> have to go back and individually edit each "income dividend
> distributions" to separate them all into qualified and
> non-qualified parts. Perhaps it would be sufficient to
> split up each distribution during the year based on the
> overall ratio of qualified vs. non-qualified for the entire
> year.
>
> This seems like the sort of end-of-year accounting headache,
> in a somewhat less complicated form, that causes some to
> recommend that clubs avoid investing in REITs.
>
> -Jim Thomas

Jim,

I agree with your assessment of the distributions from the
XLF ETF. The problem I have is, bivio does not let me
"edit" the dividend classification or I am doing it wrong.
Any one know how to edit the dividend classification.
Each time I try to split it into qualified and non-qualified
dividends, it returns to the qualified dividend
classification.
Thanks
Roy Williams

Who's never won? Biggest Grammy Award surprises of all time on AOL Music.

Roy Williams on

IraS1@aol.com wrote:
> Go to the accounting>Investments screen. To the right of the listing for
> XLF, click on the "info" link. At the bottom of the page, set "qualified
> dividend" to "not qualified".
>  
> You can then edit the individual transactions and make some or some part of
> them qualifying.
>  
> Ira Smilovitz
>  
>
> In a message dated 02/05/08 9:44:29 A.M. Eastern Standard Time,
> clubyahoo@bivio.com writes:
> Jim
> Thomas wrote:
> > > XLF is a qualifying stock.
> >
> > XLF is
> an EFT, not a stock.  It does not pay "dividends", it
> > pays
> "income dividend distributions", which are not
> > necessarily all
> "qualified" dividends.
> >
> http://www.sectorspdr.com/spdr/distributions/?symbol=XLF
> >
> > The
> following is quoted from from
> >
> http://seekingalpha.com/article/17023-do-your-etf-dividends-qualify-for-the-15-rule
> >
> >
> "It’s easy for investors who held their dividend paying
> > equity ETF the
> requisite period to mistakenly assume their
> > distributions qualify for
> the favorable tax treatment.
> > Caveat Emptor! The rules apply to each
> individual holding of
> > the fund, and of course the fund’s tax liability
> is passed
> > through to you. In order for you to get favorable
> tax
> > treatment, the shares of stock must be held by the fund
> >
> according to the stated rules, have been distributed to you
> > AND you
> had to hold the shares of the fund for at least 61
> > days out of the 121
> day period that began 60 days before the
> > fund’s ex-dividend date.
> Confused yet?"
> >
> > How do you handle this in club
> accounting?  I imagine you'll
> > have to go back and individually
> edit each "income dividend
> > distributions" to separate them all into
> qualified and
> > non-qualified parts.  Perhaps it would be
> sufficient to
> > split up each distribution during the year based on
> the
> > overall ratio of qualified vs. non-qualified for the
> entire
> > year.
> >
> > This seems like the sort of end-of-year
> accounting headache,
> > in a somewhat less complicated form, that causes
> some to
> > recommend that clubs avoid investing in REITs.
> >
> >
> -Jim Thomas
>
>
> Jim,
>
> I agree with your assessment of the
> distributions from the
> XLF ETF.  The problem I have is,  bivio
> does not let me
> "edit" the dividend classification or I am doing it
> wrong.
> Any one know how to edit the dividend classification.
> Each time I
> try to split it into qualified and non-qualified
> dividends, it returns to
> the qualified dividend
> classification.
> Thanks
> Roy
> Williams
>
>
>
Thanks Ira

That worked. I was trying to use the Transactions>edit
feature only.

Thanks

Roy Williams

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