Just asked for confirmation from anotehr board, but here's my story:
In one of my accounts I bought a bunch of big% dividend stocks (i.e., ones that paid cash divi's of say, half the share price), and then subsequently sold the stock for more than (Prior price - Divi Amount), so I made some profit on them.
So my account basically looks like this:
1099-Div $25,000 1099-B G/L -$22,000
So basically I made $3,000 on those trades, but Tax Cut is treating it as $25,000 divi profit and a $3,000 cap loss. My guess is that that is the proper way to treat it, and I'll have $19,000 of cap losses to net against some gains (hopefully) over the next few years.
So if that's the right way to treat it, I owe $5,000 more in taxes than I expected. D'oh!
(And don't get me started on BHUB, where I'm paying taxes on $5,000 that I received "proceeds" from, while never having seen a penny of it...)
T e x
posted
You've got dough still tied up in BHUB, right?
I for sure wouldn't pay tax on that, no matter what some software app comes up with...Look what software does with round-ups.
posted
yeah, if the 1099-div shows the 25k that's the right way to report it. if it was treated as a "return of capital" on the 1099, that would be a different story.
posted