mcbreck Posted March 8, 2023 Report Share Posted March 8, 2023 Previous tax preparer wanted to know if any client sold any dividend generating stocks during the first 2 months of the next year (2023 for this year's taxes). If yes, they wanted copies of their month end statements for January and February before they would do the taxes. Any clue why? It specifically mentioned dividend paying stocks and it's a different question if they sold ANY stocks the previous year. I have no clue why they'd want that. Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 8, 2023 Report Share Posted March 8, 2023 Wash Sales ? Quote Link to comment Share on other sites More sharing options...
mcbreck Posted March 9, 2023 Author Report Share Posted March 9, 2023 2 hours ago, cbslee said: Wash Sales ? That's what the client thinks but why 60 days and why dividend paying stocks? The 1099 should account for that anyway. I'm sure the planner is coming from their software (it has tax items printed). Quote Link to comment Share on other sites More sharing options...
TexTaxToo Posted March 9, 2023 Report Share Posted March 9, 2023 Dividends are only qualified if the underlying security is held for 61 days during the 121-day period surrounding the dividend date. Preparers of Form 1099-DIV are allowed to include dividends as qualified in Box 1b for which it is impractical to determine if the holding period has been met. The instructions for Form 1040 say that you must exclude any dividends reported in Box 1b if the security was not held for 61 days (see here). I suspect that very few people are diligent about doing so. 3 2 Quote Link to comment Share on other sites More sharing options...
mcbreck Posted March 9, 2023 Author Report Share Posted March 9, 2023 11 hours ago, TexTaxToo said: Dividends are only qualified if the underlying security is held for 61 days during the 121-day period surrounding the dividend date. Preparers of Form 1099-DIV are allowed to include dividends as qualified in Box 1b for which it is impractical to determine if the holding period has been met. The instructions for Form 1040 say that you must exclude any dividends reported in Box 1b if the security was not held for 61 days (see here). I suspect that very few people are diligent about doing so. My mind is blown. Thank you for the information. This would explain why I've had corrected 1099's on this exact matter. 5 Quote Link to comment Share on other sites More sharing options...
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