SoReady
Recycles dryer sheets
On the Vanguard list, just before the Capital Gains Section, what does the column with the heading
"Net
income
available
12/31/2017"
mean?
"Net
income
available
12/31/2017"
mean?
On the Vanguard list, just before the Capital Gains Section, what does the column with the heading
"Net
income
available
12/31/2017"
mean?
Ouch!Well, I just ran my first estimate of full year income for this tax year. Two of my top three equity holdings are active Vanguard funds, and both have sizable capital gains distributions this year. Just enough to push me up one bracket in Medicare MAGI. I had a nice plan but was too close to the next bracket.
Oh well. Robert Burns said it best.
If this holds when I run the numbers late this month, I might do a little rebalancing before year end, and take some of that gain now - and lower the risk of the same thing next year.
I think that means the dividends that are going to be paid out by 12/31/17.On the Vanguard list, just before the Capital Gains Section, what does the column with the heading
"Net
income
available
12/31/2017"
mean?
On the Vanguard list, just before the Capital Gains Section, what does the column with the heading
"Net
income
available
12/31/2017"
mean?
One thing to keep in mind is what if you own international funds that you need to increase the dividend amounts included in income on your tax return for estimated foreign taxes paid.
So for example, if a fund had $5,000 of income and paid $600 of taxes and distributes $4,400 in dividends, on your tax return it will show up as $5,000 of dividend income and $600 of foreign taxes paid even though the credit to your account for dividends was only $4,400.
Most fund companies don't tell you what the foreign tax paid is until after the end of the year. It is normally NOT included in the dividends reported. Then after the end of the year, your reported dividend increases, and you get the information about the foreign tax that was paid on your behalf.So, for estimating purposes, for VG total international for example, the first 3 quarter dividend payments credited to my account do NOT include the foreign tax paid part of the dividend. The 4Q estimate they give does, or does not?
Most fund companies don't tell you what the foreign tax paid is until after the end of the year. It is normally NOT included in the dividends reported. Then after the end of the year, your reported dividend increases, and you get the information about the foreign tax that was paid on your behalf.
So you in fact get paid less, but more income is reported on your 1099.
Exactly. I estimated the 2017 foreign taxes paid based on 2016 foreign taxes paid in relation to 2016 dividends received and then grossed up the dividends included in income for that amount and took a tax credit for that amount.
All this sounds bad, but it isn't in that I expect my foreign tax credit to exceed my taxes on non-qualified dividends so for my international holdings in my taxable account my effective tax rate is negative.
My guess is no. Like the first 3 quarterly dividends, this is probably the cash you will receive, and the foreign tax will be grossed up when they prepare the 1099. If you need certainty, I'd call Vanguard.My specific question is, VTIAX has $0.28 for the "Net income available 12/31/2017". Does that include foreign taxes or not?
My guess is no. Like the first 3 quarterly dividends, this is probably the cash you will receive, and the foreign tax will be grossed up when they prepare the 1099. If you need certainty, I'd call Vanguard.
Yes. Fidelity pays most of their cap gains distributions out on Friday's in December. So 12/1, 12/8, 12/15, 12/22 etc.
Yesterday 12/8 was a big one. So is next Friday 12/15.
I think the declarations are all net of tax. FWIW I took what I received YTD and added a Dec dividend of 28c a share to get what I expect to receive for the year, then divided that result by 2016 1099 div/2016 div received to get an estimate of what will be on my 2017 1099.
I think that's the best you can do. Add the previous year's foreign tax credit to this year's distributions. Or calculate based on the rate. I believe that foreign tax is only paid on dividends?I understand that, but I can make a decent estimate based on the rate in previous years on the same fund.
Ouch... can you sell it on Monday and then wait until it goes ex-dividend?Doh! I totally forgot about this and bought $100k of Wellseley on Friday...