Those of you who held VMW on October 29, just received a nice fat juicy $27.40/share "Dividend" on November 1.
Unfortunately, according to preliminary information released by the company, they do not expect to have enough "earnings and profits" to cover the amount distributed so a portion of it will be reclassified as a "Return of capital".
Their first estimation of what that amount will be is described in this form 8937 they released:
VMWare Special Dividend Reclassification
However, the exact adjustments cannot be figured out until they close their books for the year in early 2022. In the FAQ's they also issued:
VMWare Special dividend FAQ's
they spell out that you won't know what they are until you get your 1099 for 2022 and possibly not until you get an amended 1099 for 2022.
You will need to make the reclassification adjustments manually in bivio by following these steps:
It will be very important to make them and to make them correctly since they will change the cost basis of your VMW shares and the amount of dividend income you will atually report on your taxes.