I've got several accts where I've gotten dividends. As you know, dividends for tax purposes are either qualified or ordinary. To be qualified, the rule states that one has to hold the stock 61 days surrounding the 120 day period that surrounds the ex-dividend date. I'm an active trader and some of my dividends are on stocks that I sold and only held a week or two around the ex-dividend day. The problem is that all of my dividends are listed as "qualified". I called one of the brokers (ameritrade) and they said that the companies who give the dividends are the ones to say whether they are qualified or not. They also said that some companies will change their status from qualified to ordinary by april 1st or some date before april 15th. What do you guys do? do you just put them as "qualified" since the 1099's coming from the brokerages say qualified or do you look at the holding of the stock issuing the dividend and put them as non-qualified/ordinary and "overrule" the brokerage/issuing comany as you KNOW that's incorrect????
In the past, I have changed the status from qualified if I only had the stock a week or two before the ex-date and sold right aftr the ex date. Am I stupid to do so cause I just gave the govt 13% more money?? Why would say HPQ or any firm say qualified when I've only held the stock days around the ex-div date? are they that lazy???? thanks for any input.