Foreign taxes, again!!
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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 discrepancy? 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 fees. Although our situations sound similar, I would await confirmation from Bivio support before making any changes 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 Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Thanks, Laurie. I wrote to the support team and gave them our club name and info. I'll wait to hear from them. |
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