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Author: sepac Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121146  
Subject: Nontaxable distributions Date: 3/10/2001 12:16 PM
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I bought 3500 ATEA on 6/9/2000 at 3 1/2,
on 7/3/2000 they paid a cash dividend of $2.05 per share, I received $7175.00. I sold all the shares on 7/6/2000 for 1 7/8.

This dividend is reported on 1099-DIV line 3 as nontaxable distributions.

How do I report this trade on sch. D? Gain or Loss?

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Author: BigBunkler Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 48098 of 121146
Subject: Re: Nontaxable distributions Date: 3/10/2001 12:22 PM
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I bought 3500 ATEA on 6/9/2000 at 3 1/2,
on 7/3/2000 they paid a cash dividend of $2.05 per share, I received $7175.00. I sold all the shares on 7/6/2000 for 1 7/8.

This dividend is reported on 1099-DIV line 3 as nontaxable distributions.

How do I report this trade on sch. D? Gain or Loss?

=== === ===
Your original cost basis should be reduced by the amount of the nontaxable distribution (which is presumably a return of capital). Therefore, you will have a gain on Schedule D.
HTH
--BigBunk

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