Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next
Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Re: Another newbie question Date: 2/11/2002 5:25 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
He really got rude when I asked him if this was considered a capital gain distribution, why this wasn't listed on page 1 of the dividends and distributions section of the 1099.

Ignoring the rudeness, I think we've finally got to the root of the issue. The $64.85 is not a dividend, nor it is a capital gain distribution. It should not be on a form 1099-DIV. Instead it is gross proceeds from the sale of securities, and should be reported on form 1099-B.

Capital gain distributions are a special type of dividend from a mutual fund. The fund figures out its gain or loss on selling securities, and passes any net gain to the fund owners as a captial gain distribution.

The gross proceeds (which is what you have) is only part of a capital gain calculation. As has already been discussed, its the sales price of a stock. In your case, it is for fractional shares of stock. But that's only what you received for your shares. It doesn't take into account what you paid for those shares. Once you do that, you can figure out if you have a gain or a loss. Lorenzo has given you the way to figure out what your cost is for those fractional shares.

Since your broker more than likely uses substitute forms, it may be a bit hard to decipher exactly what form they are reporting each item on. But look around anything that has the $64.85 and see if it says something about being a 1099-B.

--Peter
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement