Foreign taxes, again!!
In completing our audit for 2011, we came up with a
discrepancy in our income compared to our Schwab account.
We are off by $.35 due to a foreign tax issue. When we got a
dividend from Nokia for $57.14, we also got a "foreign tax
paid" of $8.57 and "ADR Pass Thru Fee" of $.35. Schwab
shows the dividend and the foreign tax on their Dividend &
Interest report, and the ADR Pass Thru Fee on the Deposits
and Withdrawal Reports. Bivio goes thru Autosync and
records the $8.57 and $.35 as "Foreign Taxes" as an expense
on the Income Stateement for 2011. The Schwab dividends are
overstated by the $.35 compared to bivio records for the net
profit. The 1099 from Schwab also overstates the dividend
by the $.35. Any suggestions on how to reconcile the
Not sure our situations are exactly the same, but we had a
similar situation related to our investment in a Brazilian
company. The dividend amounts that were reported on our 1099
were greater than the amounts that we received in Bivio via
AutoSync. The difference between the 2 amounts appeared to
be the ADR fee. The AutoSync entries reflected subtraction
of the ADR fee from the dividend (no AutoSync entries were
received for the ADR fees). Our monthly statements from the
broker (TDAmeritrade) agreed with the AutoSync results as
well. So what we received on thew 1099 was a surprise.

To fix this, we adjusted the dividend amounts to agree with
the 1099. Then we entered new expense entries for the ADR

Although our situations sound similar, I would await
confirmation from Bivio support before making any changes
When you receive a dividend from a foreign company, many times there are foreign taxes taken out of it. This can all be entered in bivio on the dividend screen. Your K-1 would show the total amount of the dividend received and there will be a separate line item for the foreign tax withheld.

The ADR fee is different from the foreign tax withheld. It is a fee passed through from the ADR custodian to you by your broker. It is entered as a deductible expense in bivio and will not affect the total dividend amount reported on your K-1. It will show up as part of your investment expenses reported on line 13d

If AccountSync is not making the entries like this, it may be because of the way the information is coming through from the broker. It would help us to diagnose the issue better if you can email us in support if you see a problem and let us look at what you are getting before you change it.

Laurie Frederiksen
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Thanks, Laurie. I wrote to the support team and gave them
our club name and info. I'll wait to hear from them.