Scottrade statement " cash in lieu SFL dividend .428600 @ $27.000" So I guees it's $27 for me.
"For qualified dividends you received during the 2006 tax year (1/1/06 - 12/31/06), you must have held the securities for at least 61 days out of the 121-day period that began 60 days before the ex-dividend date." So what does this realy say??
Just asked my CPA today there is 120 day rule. Not 60 day as I thought. She explained it all after I showed her the print out from FTO. Scottrade did not give return on capital. No stock company is probably sharp enough to understand the 120 day rule. This year $24 will be cost base for SFL. She said in a couple months I may get another corrected 1099. $ amount will be small so we went with what we have. Just goes to show the stock brokerages are not doing a proper job. Hope next year they do better for It will mean a lot more money.
Here is how I understood it. The whole amount save .05 return of capital is given as a div. Of that 17.84 div 17.04 is the fair value tax basis of the SFL shares at selling time.
I don't know anything about the 60 day rule.
I sure agree!!! That's why AMTD and SCOTTRADE don't seem too know how to do a 1099. Also, are you required to hold the stock 60 days before X div to get 15% tax bracket? This looks to be a real turkey shoot.
For tax reporting purposes, according to the FRO docs, the SFL spinoff from 3/20/06 is taxed: .80 as qualified div per share, .05 as return of capital per share, and 17.04 as the fair value for the SFL spinoff share.
So, is the 17.04 value also considered a qualified div?
And for each share, the total taxed amount, as a qualified div, would be 17.84, with the .05 per share to be used to lower the cost basis at selling time?
I can't imagine IRS agents keeping track of each and every aspect of people's holdings, that this accuracy would only matter at auditing time and reporting as honestly as one can do. I got a fourth corrected 1099 a few days ago. No wonder why some of us wait until last minute to do our taxes.