Qualified Dividends on 1099 reclassified in Bivio to ordinary
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Qualified Dividends on 1099 reclassified in Bivio to ordinary We have a couple of investments where dividends are shown as Qualified on the 1099, but Bivio has reclassified all or a portion as Ordinary. I believe this is because we did not hold the stock long enough before the ex-dividend date. The stocks are tagged as 100% Qualified in Bivio. The tax effect is insignificant to the club. Does the IRS disregard these types of differences between the 1099 and tax return? Yes. With this reclassification, your club members may be paying slightly more tax than if the dividends were 100% qualified. The IRS never complains when it receives more money. Ira Smilovitz We have a couple of investments where dividends are shown as Qualified on the 1099, but Bivio has reclassified all or a portion as Ordinary. I believe this is because we did not hold the stock long enough before the ex-dividend date. The stocks are tagged as 100% Qualified in Bivio. The tax effect is insignificant to the club. Why give the IRS more than you should? Peter Dunkelberger
In this case, it's not more than you should. It is the correct amount of tax. The third party reporting is inaccurate because the broker doesn't have to run all of the tests for qualified dividends. Ira Smilovitz On Sun, Feb 25, 2024 at 1:55â¯PM Peter Dunkelberger via bivio.com <user*26984900001@bivio.com> wrote:
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