Tax Free Stock Dividend

#4 02-04-2005, 10:38 PM

Thanks for the help, guys. I finally got a clarification that this was a
regular spin-off handled by the spin-off option in Money

"Cal Learner-- MVP" <via_newsgroup[at]please.tnx> wrote in message
news:3j10019ta9kd5nciql4o083edqtntsl3qb[at]4ax.com...
- quote -

> In microsoft.public.money, Dick Watson wrote:
> > **Stock** dividend
> > is the operative problem here. I'm still wondering why Reinvest Dividend
> > is
> > not the best choice? Even if paid in shares, isn't the dividend current
> > dividend income?
> Most splits are implemented "in the form of a stock dividend." Not
> all stock dividends are splits of the same stock. Not all stock
> dividends of a spin-off stock are tax-free, but it seems that most
> are if the paperwork is done.
> http://www.google.com/search?hl=en&l...d+&btnG=Search
> If John has the other kind of stock dividend, he would want to read
> up on how to do a spinoff. That would differ according to which
> version of Money he has.
> I don't know what it would take to have a stock split that was not
> "in the form of a stock dividend." Perhaps that would involve
> calling in the old shares and reissuing new ones.

#3 02-01-2005, 09:55 PM

In microsoft.public.money, Dick Watson wrote:

- quote -

> **Stock** dividend
> is the operative problem here. I'm still wondering why Reinvest Dividend is
> not the best choice? Even if paid in shares, isn't the dividend current
> dividend income?

Most splits are implemented "in the form of a stock dividend." Not
all stock dividends are splits of the same stock. Not all stock
dividends of a spin-off stock are tax-free, but it seems that most
are if the paperwork is done.

http://www.google.com/search?hl=en&l...d+&btnG=Search

If John has the other kind of stock dividend, he would want to read
up on how to do a spinoff. That would differ according to which
version of Money he has.

I don't know what it would take to have a stock split that was not
"in the form of a stock dividend." Perhaps that would involve
calling in the old shares and reissuing new ones.

#2 02-01-2005, 09:20 PM

Ooops. Cal read closer/was thinking clearer than I was. **Stock** dividend
is the operative problem here. I'm still wondering why Reinvest Dividend is
not the best choice? Even if paid in shares, isn't the dividend current
dividend income?

"Dick Watson" <littlegreengecko[at]mind-enufalready-spring.com> wrote in
message news:uQrSvOKCFHA.3504[at]TK2MSFTNGP12.phx.gbl...
- quote -

> Enter a transaction in the investment account register, for the investment
> in question, activity type Dividend or Reinvest Dividend, as the case may
> be.
> "John Lehman" <johnmlehman[at]sbcglobal.net> wrote in message
> news:KHQLd.19512$5R.7420[at]newssvr21.news.prodigy.com...
> > Could someone please enlighten me with how to enter a stock dividend. If
I
> > "buy" the stock, I have to take the price out of cash, which messes up
the
> > balance. If I buy it for 0 then capital gains are messed up.

#1 02-01-2005, 08:20 PM

In microsoft.public.money, John Lehman wrote:

- quote -

> Could someone please enlighten me with how to enter a stock dividend. If I
> "buy" the stock, I have to take the price out of cash, which messes up the
> balance. If I buy it for 0 then capital gains are messed up.

If you have a stock dividend where you get one more share of the
existing stock for each one you hold, enter it as a 2 for 1 split.

02-01-2005, 08:19 PM

Enter a transaction in the investment account register, for the investment
in question, activity type Dividend or Reinvest Dividend, as the case may
be.

"John Lehman" <johnmlehman[at]sbcglobal.net> wrote in message
news:KHQLd.19512$5R.7420[at]newssvr21.news.prodigy.com...
- quote -

> Could someone please enlighten me with how to enter a stock dividend. If I
> "buy" the stock, I have to take the price out of cash, which messes up the
> balance. If I buy it for 0 then capital gains are messed up.

#-1 02-01-2005, 06:24 PM

Could someone please enlighten me with how to enter a stock dividend. If I
"buy" the stock, I have to take the price out of cash, which messes up the
balance. If I buy it for 0 then capital gains are messed up.

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