Broker lists all dividends as qualified

David Smith on

E*Trade has listed all of our dividends as qualified. Bivio
lists several of them as not being qualified.

Bivio seems to have it right. Should I just use what bivio
says and list both qualified and non-qualified for tax
reporting and not match the broker statement?

Thanks, Dave

Arthur Klages on

Dave...

Change Bivio manually to conform with the brokerage 1099. That's what's
reported to the IRS.

You will also be better off tax wise.

Arthur Klages
Treas. Senior Investment Club LLC

-----Original Message-----
From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of David
Smith
Sent: Wednesday, February 06, 2008 7:28 PM
To: club_cafe@bivio.com
Subject: club_cafe: Broker lists all dividends as qualified

E*Trade has listed all of our dividends as qualified. Bivio lists several
of them as not being qualified.

Bivio seems to have it right. Should I just use what bivio says and list
both qualified and non-qualified for tax reporting and not match the broker
statement?

Thanks, Dave

Rip West on

Change Bivio manually to conform with the brokerage 1099. That's what's
reported to the IRS.

You will also be better off tax wise.
>>

I ***really*** disagree with that advice. Brokerage firms make more mistakes than I have time to mention on the 1099s. And now they have taken it upon themselves to report cost basis of securities to their customers. They do a miserable job of this. Fortunately, unlike dividends, their cost basis figures are not reported to the IRS.

As Ira said, figure out what it should be and do it. Why are we so deathly afraid of disagreeing with reports to the IRS, when we know they are wrong. In addition, when we see all these differences just with investment clubs, does anyone really think that the IRS is following up on small discrepancies between qualified and non-qualified?

Rip West
Saint Paul, MN

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