I have a question regarding ETF dividends.
Our 1099 from TD Ameritrade indicates that a portion of each
ETF dividend is "nonqualified" while a larger amount is
listed as "qualified". (For example, a dividend of $11.64 is
shown as $10.34 qualified and $1.30 nonqualified.)
Can a dividend be both qualified and nonqualified? And, if
so, how do we enter that information into bivio?

Dear Bob,

Yes. A dividend can be split into both portions. The non qualified portion does not qualify for special tax rates. The qualified portion (if you've held the underlying stock long enough) does.

You will need to split each dividend entry into two dividend entries. Enter the "non Qualified" portion as a "dividend" in bivio. Enter the qualified portion as a "Qualified Dividend". You will have to find out how to split each one using tables like this that you can usually find at the website for the ETF. This one is for the SPDR ETF's:

https://www.spdrs.com/library-content/public/ID2261-IBG-8043_SPDR%20ETF%202012%20ICI%20Tax%20Summary_v1_gg%20%282%29.pdf

When you run the tax program, make sure these ETF's are identified as "Not 100% qualified". If they are not, you can change the category when you take the tax interview.

People often ask about whether owning ETF's in their club causes any accounting problems. As you can see, it is something you can adjust for, but it requires more work by your treasurer at tax time.

Hope that helps. Let me know if you have any further questions.

Thank you for using bivio!

Laurie Frederiksen
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