I am new to the stock market and at 63 I am too proud to ask my guy at Scottrade a "dumb" question. I took 80k of speculative $$ and am in REITS and Ford.Anyway, say CRX or any divie stock is paying ex-dividend 23 December 2011. Is that dividend taxable in 2011 or the year in which it is paid; i.e. 10 January 2012. Hope you will forgive an elementry question.
Not dumb at all. Taxable the year it is received by you...
REITS are different. Because they ahve to pay 90% of their taxable income as dividends their Q4 dividend is taxable in 2011 even though it is paid in 2012.
Check the 1099 your broker provides or dividend paying company. I know mortgage reits like NLY, ANH, and MFA always issue a press release in Jan or Feb that details the tax breakdown.
The dividend is taxable the day it is paid. That is the date the check is cut. It is not the date the stock trades ex dividend. Typical payment is several weeks after the stock trades ex dividend.
Thanks for the info.