Our 9-year old investment group recently moved to the bivio
software -- with a Change Over date of 1/1/2008. With the
super assistance of Laurie Federiksen, we've managed to get
converted, except for one item.

A payment of $25.53 on 1/11/08 from Chungwa Telecom (CHT) is
reported by our broker on the 1099-B form as Event=MERGER
making this a proceeds from sale. According to JP Morgan,
the US representative for CHT, this was an accrued interest
payment, not proceeds from sales.

I understand that in order to correctly enter this amount,
we would need to go back to our broker (Fidelity) and get a
corrected 1099. This I imagine will take some time. With
members pushing for their K-1s, how would you recommend I
handle this?

Thank you,
Maureen

Rip West wrote:
> Maureen,
>  
> If  you believe that this should be entered as interest income, then I
> would go ahead and do it. I seriously doubt that the amount of 25.33 is ever
> going to be challenged by the IRS. Even if it is, the effect on  your
> members' returns would be nil. Also, if Fidelity were to issue a corrected
> 1099, your return would be correct. In short, I see no reason to wait until it
> is corrected.
>  
> Rip West
> Saint Paul, MN
Thanks Paul,
But after pulling our tax statements and comparing them with
the brokers's 1099, I see that Fidelity considers all
proceeds from CHT (excluding dividends) as LTCG or STCG.
I'm checking with Laurie to see what to do next.
Maureen

Thank you, Ira
You folks are SUPER to explain this tax stuff. What a
learning experience!! I'm so glad to have discovered bivio.
Best,
Maureen

iras1 wrote:
> Looking at the information at CHT's website, they claim to have made two dividend distributions last year, a cash distribution in November and a share distribution in December. In the FAQ on the website, they claim that the cash distribution is a dividend under US tax law and that the ROC tax withheld qualifies for the US foreign tax credit. CHT claims that the share distribution is not taxable to US shareholders, other than any cash received in lieu of fractional shares. This means the share distribution should be entered as a split of 1.21:1. Details at:
> http://www.cht.com.tw/CHTFinalE/Web/AboutUS.php?CatID=788 and
> http://www.cht.com.tw/CHTFinalE/Web/AboutUS.php?CatID=179
>  
> Ira Smilovitz
>  
> In a message dated 02/15/09 19:01:32 Eastern Standard Time, milleratlarge@bivio.com writes:
>
>
>
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>
> Rip West wrote:
> > Maureen,
> >  
> > If  you believe that this should be entered as interest income, then I
> > would go ahead and do it. I seriously doubt that the amount of 25.33 is ever
> > going to be challenged by the IRS. Even if it is, the effect on  your
> > members' returns would be nil. Also, if Fidelity were to issue a corrected
> > 1099, your return would be correct. In short, I see no reason to wait until it
> > is corrected.
> >  
> > Rip West
> > Saint Paul, MN
> Thanks Paul,
> But after pulling our tax statements and comparing them with
> the brokers's 1099, I see that Fidelity considers all
> proceeds from CHT (excluding dividends) as LTCG or STCG.
> I'm checking with Laurie to see what to do next.
> Maureen
>
>  
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