Our club discussed this company last night at our meeting,
Windstream Holdings, Inc. (WIN). I am wondering if any of
you have experience with it? Is it one of those where we
want to avoid it because of the club tax ramifications that
may come from holding it?
Thanks!
Andy
Laurie Frederiksen on
Dear Andy,
If you go to their Investor Relations page, you will see a prominent box labeled "Important Tax Information". That is probably a clue to be cautious.
It looks like they have had to re-characterize their dividends for the past two years because when they closed their books in the spring, they didn't have enough earnings and profits to cover the dividends they had paid. The amounts shown on your 1099 that you would have used to prepare your taxes would have been preliminary amounts.
If you had owned this, it would have meant you (and your members) would have had to file amended tax returns in the middle of the year.
If they start making enough money to cover their dividends, this won't be a problem. But you might want to wait until they are demonstrating they are profitable enough to do this before getting into a potential re-filing situation in a club setting.
Laurie Frederiksen Invest with your friends! www.bivio.com
On Tue, Oct 15, 2013 at 12:43 PM, Andrew Butler <> wrote:
Our club discussed this company last night at our meeting,
Windstream Holdings, Inc. (WIN). I am wondering if any of
you have experience with it? Is it one of those where we
want to avoid it because of the club tax ramifications that
may come from holding it?
Thanks!
Andy
Andy Butler on
Thanks Laurie - interesting information.
Andy
On Tue, Oct 15, 2013 at 10:53 AM, Laurie Frederiksen <laurie@bivio.biz> wrote:
Dear Andy,
If you go to their Investor Relations page, you will see a prominent box labeled "Important Tax Information". That is probably a clue to be cautious.
It looks like they have had to re-characterize their dividends for the past two years because when they closed their books in the spring, they didn't have enough earnings and profits to cover the dividends they had paid. The amounts shown on your 1099 that you would have used to prepare your taxes would have been preliminary amounts.
If you had owned this, it would have meant you (and your members) would have had to file amended tax returns in the middle of the year.
If they start making enough money to cover their dividends, this won't be a problem. But you might want to wait until they are demonstrating they are profitable enough to do this before getting into a potential re-filing situation in a club setting.
Laurie Frederiksen Invest with your friends! www.bivio.com
On Tue, Oct 15, 2013 at 12:43 PM, Andrew Butler <> wrote:
Our club discussed this company last night at our meeting,
Windstream Holdings, Inc. (WIN). I am wondering if any of
you have experience with it? Is it one of those where we
want to avoid it because of the club tax ramifications that
may come from holding it?