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Possible Bug in Form 1065 Generation
I think I may have found a (minor) bug in the software that generates the 1065 Schedule K.

We had a cash distribution that was labeled in Bivio as short-term capital gain (STCG) distribution (it was from an ETF). The 1099-DIV we received from our broker (Scottrade) correctly included it in the amount reported in box 1a which should then be included on form 1065 schedule K, line 6a. However, when I generated the return, the amount on schedule K, line 6a did not include it unless I changed the transaction and reclassified it as an ordinary dividend.

What do you think?
A short term capital gain distribution from an ETF should be entered in bivio as a non-qualified (ordinary) dividend. It appears that the problem is with the Accountsync data feed from the broker.

Ira Smilovitz

On Thu, Feb 16, 2017 at 8:33 PM, David Sacks <baltodave@gmail.com> wrote:
I think I may have found a (minor) bug in the software that generates the 1065 Schedule K.

We had a cash distribution that was labeled in Bivio as short-term capital gain (STCG) distribution (it was from an ETF). The 1099-DIV we received from our broker (Scottrade) correctly included it in the amount reported in box 1a which should then be included on form 1065 schedule K, line 6a. However, when I generated the return, the amount on schedule K, line 6a did not include it unless I changed the transaction and reclassified it as an ordinary dividend.

What do you think?

There are small but subtle differences in taxation related to short term gains and ordinary dividends.

If the information was sent by the broker as a short term capital gain, it is entered that way in bivio and then reported correctly in the appropriate place on Schedule D.

If it should have been sent as an Ordinary dividend amount and that is how your broker has it classified on your 1099, you were correct to move it to the dividend reporting section by changing its classification to Ordinary dividend (also called Non-Qualified).

Subtleties like this are why step 2 and 3 of the tax prep process are so important.

Laurie Frederiksen
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On Fri, Feb 17, 2017 at 12:42 AM, ira smilovitz <ira.smilovitz@gmail.com> wrote:
A short term capital gain distribution from an ETF should be entered in bivio as a non-qualified (ordinary) dividend. It appears that the problem is with the Accountsync data feed from the broker.

Ira Smilovitz

On Thu, Feb 16, 2017 at 8:33 PM, David Sacks <baltodave@gmail.com> wrote:
I think I may have found a (minor) bug in the software that generates the 1065 Schedule K.

We had a cash distribution that was labeled in Bivio as short-term capital gain (STCG) distribution (it was from an ETF). The 1099-DIV we received from our broker (Scottrade) correctly included it in the amount reported in box 1a which should then be included on form 1065 schedule K, line 6a. However, when I generated the return, the amount on schedule K, line 6a did not include it unless I changed the transaction and reclassified it as an ordinary dividend.

What do you think?