I don't have my own personal polar bear. If I buy ITIC and get a penguin as a dividend, do I eat the penguin myself? Does it taste like chicken? Maybe I will just forward it to you. Are penguin dividends taxable?
pmlljl, It is only because ITIC has had to purchase Antarctic real estate from disgruntled policyholders that we can look forward to penguin dividends. Here are some of your options:
* Hold your shares in an IRA. You don't have to begin withdrawing penguins until the year you turn 59.5. Finding a custodian for such an IRA can be a bit difficult.
* Hold your shares in a taxable account. The tax on a dividend paid in penguins must be paid in like kind. Be sure to send any estimated payments made in penguins to the Antarctic Payment Center of the IRS. Warnings: (1) I know of no charities that take penguins as contributions. (2) Eating the penguin dividends and denying to the IRS that you ever got them constitutes tax evasion. They'll catch you when the auditor smells penguin on your breath.
* Hold your shares in a penguin dividend reinvestment program. Your penguins will be reinvested in ITIC shares. You'll still have to pay taxes on the dividends--in penguins, of course--so you'll be buying penguins from a bird broker to meet this obligation.
Just wait until ITIC is buying Amazon jungle real estate from disgruntled policyholders. No telling what kind of dividends we'll get.
Thanks for the complete explanation on the investment options and tax consequences relating to penguin dividends.
i hope ITIC expands its global operations around the world and acquires land everywhere through foreclosure, then I can begin a world famous zoo stocked with wildlife from around the world all received as dividends. I think I will form a tax qualifying organizztion to hold my zoo and then all the animal dividends that I will receive from ITIC will be tax free.