when I received my 1099 from Schwab, the amounts on the 1099 do not match the amounts distributed per my statements. Similarly, I am trying to figure out the distribution percentages from holding from last May through 12/31.
Anyone done the calculation for their tax return--and if so can you please provide how the calculation goes? I thought I was smart enough to sift thru this but the further I read, the more confused I become. I realize there is a return of capital (like holding a mortgage note) and have that piece settled. What I am confused about applies to the remaining amounts and how the percentages work.
Not sure what you are referring to about the percentages. Here is the booklet that explains it: http://mms.businesswire.com/bwapps/mediaserver/ViewMedia?mgid=307499&vid=1 There will be repayment of principal as you say which goes on schedule D as gross proceeds, also OID interest representing the interest the trusts pays to you - this part if fully taxable. Then there are expenses. If you look on page 11 of that booklet you can see how all those amounts add up to the distributions you received.
Liza----call me stupid--I somehow went to pg 10 instead of 11. You are correct, for every 1000 sh we received $1420. since we held the interests thru 12/31--and we did not buy on the IPO but shortly thereafter (5/9) we will allocate the distribution for the two dates at the .803 and .284 respctively. The admin exp is no good to us as we only itemize every other year. Then we get to the $1069 principal repayment.