Now that we have endlessly discussed the dividend classification probably taxable for 2014. Will the entire dividend be taxable? or will a portion be a return of capital? I have for my quarterly estimated income tax payments assumed that they are 100% taxable. Anyone else have a assumption for est tax payments? Does anyone have any insight/guess?
No, just what management said, that " almost all" of the dividend will be taxable. I don't see how it would be possible to get any further visibility on this, you'd need to have access to their tax accounting.
Per an email from Investor Relations on June 16, "Simply put, the classification of 2014 LNCO dividends won"t be available utill approximately mid-January 2015. At that time we will put out a press release and post Form 8937 to LNCO's website."
You mention in your message " I have for my quarterly estimated income tax payments assumed that they are 100% taxable". We don't know what your income or taxable bracket is. The simple matter of fact is LNCO pays $2.90 a year per share in dividends which would be considered income if you pocket the money.
Read this from the WSJ 01/10/2013
The basics: Qualified dividends, as well as capital gains, for individuals in the 25%, 28%, 33% and 35% income-tax brackets will continue to be taxed at 15%. Individuals with more than $400,000 in taxable income—and couples with more than $450,000—will see the rate rise to 20%. (People in the 10% and 15% brackets, as before, will have a zero tax rate on dividends and capital gains.)