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Author: irasmilo 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 121320  
Subject: Re: Diividend Question Date: 12/22/2010 4:38 PM
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I am doing some last minute tax planning for 2010 and just noticed a Closed End Fund I own in a taxable account declared a special dividend I was not expecting. It is payable Jan. 7,2011 to shareholders of record on Dec. 31,2010 with an ex-dividend date of 12/29/10. Will this dividend be reported for any taxable income or capital gains for the tax year 2010 or 2011?

It's impossible to answer without knowing what the fund is. Generally, dividends are taxable in the year received (2011), but certain types of funds have a period of time (I believe its 30 days) to make their distribution after the end of the tax year and the distribution is taxable in the preceding tax year.

Ira
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