I bought 150 shares on 8/19/13, received a dividend of $147 on 10/25/13. I expected a 1099 DIV but got a 1099B for $44.48 and a OID for $105.66? also a expense of $3.14. If i add 105.66 & 44.48 then subtract the 3.14 that equals the $147 dividend. I have the pieces but what do I do with them? I downloaded the MVO tax information booklet and went bug eyed trying to figure out what they were telling me. Is it really that complicated?
It is not a dividend and should not be declared as a dividend.
Yes, the tax booklet is the correct treatment.
It is confusing the first time but not that complicated.
You will have OID interest, repayment of principal and royalty expenses.
The OID is a form of interest, so goes in the interest section (sched A ?)..
The repayment of principal would be on schedule D with basis equal proceeds.
The expenses would be on schedule E.
I figured everthing out using the tables in the tax booklet from MVO businesswire. Amounts matched the numbers provide by the broker. I have one last question. My $44.48 that comes from table E referred to as "gross proceeds " or (repayment of pricipal) and reported with a 1099B using box 2, do I use a cost basis of $0.00 since it didn't cost anything. it was paid out like a dividend.