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URL:  https://boards.fool.com/hey-joel-btw-the-pass-thru-rule-on-qualified-31220129.aspx

Subject:  Re: Hybrid/Other Annuities Date:  4/23/2014  8:46 AM
Author:  TMFGalagan Number:  35275 of 36663

Hey Joel -

BTW, the pass-thru rule on qualified dividends is a significant reason to never to buy something like PFF (iShares S&P US Preferred Stock Index Fund) in a taxable account. This ETF pools qualified and non-qualified income and passes it all through as non-qualified dividends. A fine strategy in a tax-advantaged account, but a poor one in a taxable account.

I believe this is inaccurate. iShares provides a breakdown of qualified/nonqualified divs for use on your tax return:

http://www.ishares.com/us/literature/tax-information/2013-qd...

For instance, here, PFF pays out almost 67% qualified dividend income, which you can claim on your tax return.

The more likely issue is that some *brokers* might not incorporate that information into their 1099s. But that's a broker issue, not an issue with the ETF structure itself.

best,
dan
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