Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121567  
Subject: Re: Dividends and Capital Gains? Date: 3/9/1998 10:05 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
[[I am a new investor and 1997 earned me a few dollars
in dividends. Here is what I got in 1997 :

1. Dividend from Savings Account]]

Generally, savings accounts are INTEREST...and not dividends. Even if your savings account is in a credit union, and the credit union calls it a dividend. The credit union will still report the interest to you on Form 1099INT. Which means it is an interest payment.

[[ 2. Dividend from my DRIPs.]]

These are certainly dividends, and should be reported as such.

[[ 3. Distributions from my Index Fund because of
turnover in 1997.]]

You may have dividends and/or capital distributions. You'll have to go to the explanation provided to you with your 1099 from the mutual fund company in order to read the form and put the numbers in the right place. Your "regular" dividends will be reported on Sch B. Your capital gain dividends will be reported on Sch D.

[[ Are all of these reported as Dividends? Or should I
be filing Schedule D for (3) and at what rate (28% or
20%)?]]

the information provided with your mtutual fund should provide you with the information of which long term capital gains (Sch D) are 20% gains and/or 28% gains. And the instructions to Schedule D will help you with the rest.

TMF Taxes
Roy
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Prev | Next | Next Thread

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.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
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.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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