Tax Question: Are these 2011 or 2012 Dividends?

[Amethyst]

I couldn't find anything in the "terms and conditions" to answer my title question. I'm counting that the FIREees who live off investment income (and other smart forum members) will know!

Amethyst


The following transactions are pending for this account: Total Pending Certificate Request(s): 0 shares Total Pending Sale(s): 0.0000 shares Total Pending Transfer(s): 0.0000 shares Transaction TypeDate ReceivedAmount Dividend Funds Pending Reinvestment12/30/2011$XXXX

Purchases and sales are made in accordance with the Terms and Conditions of the plan. Please click on Plan Summary for details related to trade dates. Completed purchases and sales are viewable in Transaction History on settlement date, usually 3 business days after the trade is executed.

 

[REWahoo]

Looks like 2011 to me...

 

[LOL!]

I always go by the 1099DIV, but these appear to be 2011 dividends.

Sometimes I get dividends in the first week of January, but my broker clearly states they are really from the previous December, so no confusion on my part nor on the part of the 1099DIV.

 

[Amethyst]

Thank you - I think they are 2011 divs also. I find the "execution" vs "settlement" date language confusing.
Amethyst

 

[kaneohe]

I find the "execution" vs "settlement" date language confusing.
Amethyst

I would guess that when or even if you execute the reinvestment of dividends is immaterial. If you received the dividends in 2011, they are 2011 income
regardless of whether you reinvest them or not.

 

[ziggy29]

Thank you - I think they are 2011 divs also. I find the "execution" vs "settlement" date language confusing.
Amethyst

If the dividends are paid in 2011, when the stock trades (or settles) is irrelevant -- it's 2011 dividend income.