I am worried about Teva. However, I have made a lot of money when I am worried, and lost a lot when I am so sure. I have just watched as my other generic MYL has gone thru the roof, with a possible further doubling coming in two years. So I say hold TEVA and bear the risk. I think the company has overstated the likely damage of the Copaxone problem. But I am worried.
In TurboTax select "Federal taxes", then "Interest and Dividends", and then "Interest on Form 1099-INT"
Your novel hybrid reporting scheme might work out the same. But might not next year when some of your "Royalty Income" is earned on units held for less than one year and some for more than one year. And I have no idea how the IRS computer program works and selects returns to challenge. But ultimately, who do you want to stand behind, the Trustee and their tax attorneys who have prepared the comprehensive Tax Guidelines for decades, or the brokerages who are only recently scrambling to provide reports under pressure from new reporting rules?
Follow the MSB Tax Guide. Interest is reported on Federal 1040 Schedule B. So in TurboTax select Income, then select Interest, then enter "Mesabi Trust" and the amount indicated by the Tax Guide. But in your case I would enter nothing for $0.09.
Your calculations from the Tax Guide are correct, except that you have held your units less than a year, so you are eligible to use the "percentage depletion dollar value per unit" of 0.070848 + 0.082042 = 0.153, or $153 for 1000 units. Your Sched B will show no interest because it is less than ten cents, and everything else will go on a Schedule E and show net income of $834 (1019 - 32 - 153). You should now disregard the redundant 1099Misc ($970) that you received for MSB probably from a brokerage account, and any subsequent balderdash they send to you. For tax year 2014 you will have some income still reported on Schedule E and some will flow to Form 4797, and therefore be tax-advantaged long term capital gains. For 2015, all your income (except any interest) will be LTCG and very easy to report. (I have done it this way for three years now, and have not had any problem, yet.)
Yes, and where are you going to put that number? Mesabi Tax Guide tells you. And in a taxable account you'll keep more for yourself. After holding all your units for over a year the tax reporting gets much easier.
I know, but the Mesabi numbers will stand up under a challenge. The brokers do the best they can, but have generally been wrong for me. And they frequently submit corrected filings into early April. At least do it both ways once to see how your broker performs.
So you avoid taxes now, but will pay regular tax on the distributions later. And you can hold multiple lots for varying time frames without the cumbersome tax reporting outlined in the Mesabi Tax Guide. I prefer to hold MSB in an ordinary account such that after holding for more than a tear my MSB income is effectively taxed like a long term capital gain each year as it is received. I keep ordinary income generators in my tax-deferred account. Anyway you have made a good investment, in my opinion.
I'm not short, I'm very long, from the days of sub-5/share, after MTW had tanked. I hate paying taxes so much I may hold this position a lot longer. I think Carolyn will just fade away.
LOL: "losing more than you invested"??? That means MTW goes to zero!!! There really should be a board for traders and techs to argue what the jiggling charts mean for prices tomorrow and next week.
Any GPRO fans out there? Did anyone buy HOLX after the takeover, with the big bucks from the sale? I admit that I did, and more recently sold some Jun20 puts for a nice premium. I'm betting they get their house in order, but it is risky.
You're shorting a company that is recovering from a major fall from grace. One that is supplying cranes to a world undergoing urbanization, and vertical construction like never before. One that is producing food service equipment for a world of hungry people at branded restaurant chains. You may get lucky and capture some small swings, but then you'll pay half your short term earnings to the IRS. And you have time to ask others to fix your trades by their market actions. Lastly, I find it interesting that a trader quotes prices like 27.55 to the penny. It seems so insignificant.