"alex turchina" <aturchin45[at]hotmail.com> writes:

- quote -

Yes. The IRS has said that they definitely are not
qualified dividends.

- quote -

My broker (Fidelity) says that:
(a) they will tell me what dividends are "real"
and which are cash-in-lieu
(b) they will pay me cold, hard, cash to compensate
me for the extra tax hit on in-lieu payments
(assuming the highest bracket).
(c) they will gross up that compensation so that post-tax
(also assuming the highest bracket) the compensation
will properly offset the tax hit on the in-lieu payments.

In other words, Fidelity, at least, will be making its
customers whole.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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Has IRS resolved the issue of dividends held in margin
accounts when the broker may use your securities during the
holding requirement and therefore they may no longer be
qualified dividends for lower tax?

My broker tells me that they will pay the value of dividend
as cash in lieu, but they can not tell me if they will or
not be taxed to me as they never left for account.

Thanks, Alex

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