Handling Dividends During Tax Preparation

In step 2 of the tax preparation process, you'll answer questions and make comparisons that will ensure sure your dividend information is reported correctly. Sometimes the tax reporting requirements for dividends you receive during the year changes at the end of the year. When this happens, they need to be "Reclassified" into several different categories in bivio.

The changes you need to make are often not known until you receive your 1099. Changes are not something that can be made automatically for you by AccountSync.

It is important to make any adjustments needed during this step. Information on distributions (often referred to collectively as Dividends) will affect your taxes. They may also impact your cost basis and ultimately your capital gains and losses.

Here is a description of what needs to be done: