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The Royal Bank of Scotland Group plc Message Board

  • nofway nofway Feb 28, 2014 3:13 PM Flag

    RBS-PI Qualified Dividend?

    My custodian is reporting RBS-I as ordinary income. Does anyone else have RBS-I in a taxable account? Other foreign preferred stocks such as RBS-H, IND, AEV, Prudential UK (PUK-P); and Barclay’s preferred stocks all report qualified dividends. RBS-I was reported qualified in 2010 and 2011. Is there part of the IRC that states foreign preferred stocks pay qualified dividends? Is there some other reason why these foreign securities pay qualified dividends and domestic banks (BAC, C, etc) pay as ordinary income?

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    • RBS-I can QDI rather than ordinary income. Preferreds are not universal in structure, some securities with dividends are ordinary income and others are QDI. If I remember correctly, the prospectus contains a statement covering this. Contact RBS investor services by email, and forward the response to your custodian. However, for filing purposes it's probably too late to get them to send you an update, you have a choice file as ordinary income and then amend when you get an update or take a risk and file as QDI, with a potential for audit/review.

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