Now that we have endlessly discussed the dividend classification probably taxable for 2014. Will the entire dividend be taxable? or will a portion be a return of capital? I have for my quarterly estimated income tax payments assumed that they are 100% taxable. Anyone else have a assumption for est tax payments? Does anyone have any insight/guess?
Per an email from Investor Relations on June 16, "Simply put, the classification of 2014 LNCO dividends won"t be available utill approximately mid-January 2015. At that time we will put out a press release and post Form 8937 to LNCO's website."
You mention in your message " I have for my quarterly estimated income tax payments assumed that they are 100% taxable". We don't know what your income or taxable bracket is. The simple matter of fact is LNCO pays $2.90 a year per share in dividends which would be considered income if you pocket the money.
Read this from the WSJ 01/10/2013
The basics: Qualified dividends, as well as capital gains, for individuals in the 25%, 28%, 33% and 35% income-tax brackets will continue to be taxed at 15%. Individuals with more than $400,000 in taxable income—and couples with more than $450,000—will see the rate rise to 20%. (People in the 10% and 15% brackets, as before, will have a zero tax rate on dividends and capital gains.)
No, just what management said, that " almost all" of the dividend will be taxable. I don't see how it would be possible to get any further visibility on this, you'd need to have access to their tax accounting.