Have you guys ever gotten a "special dividend?"

 

I can't really think of any. I remember seeing Costco was giving shareholders $7/share and thinking wow, that is good stewardship. They pump success/monies back at the stakeholders.

I was just in my eTrade acct and was totally puzzled. I don't leave any cash at all in it because I am not actively trading. And there are thousands of dollars in there. I thought oh no did they liquidate something?

No, vmWare gave a special dividend of $26.81/share. It was like taxable dollars fell from the sky, never had that happen as far as I can remember.

yes

Of course it is common for companies to raise the standard rate at which they pay dividends. However sometimes they prefer to send some money to shareholders without implying that there is a new standard higher rate. Pretty generally they term that a "special dividend".

To answer your question, yes I have gotten them. Not from Costco however.

--
personal GPS user since 1992

gotcha

Well at any rate, I cashed it in, and I don't think it's simply taxable at 24%, there was some long winded explanation on part of it being x, part of it being y, depending on their fiscal results this coming year.

I am taking that money and paying down debt. My wife doesn't really get it, she thinks it's party time. Hate to admit we have debt, it happens. We have different backgrounds, she grew up with servants is what I always say, and you just can't take that out of people lol

Nope

But I wish I had.

--
It is impossible to rightly govern a nation without God and the Bible. ----George Washington

Special

Billiton pays more special dividends
when they hit a pipe that contains diamonds, all kinds of money, otherwise, not so much, dividends of pennies
cross that out, BHP now, name changes mess me up

--
If only ..

return of capital

johnnatash4 wrote:

there was some long winded explanation on part of it being x, part of it being y, depending on their fiscal results this coming year.

In some circumstances, if a company pays out "too much" in dividends the excess has to be accounted for as a return of capital. That means you don't pay current year dividend taxes on that portion, but you have to adjust upward your cost basis, which means you pay for it later when you sell the position.

--
personal GPS user since 1992

Is that English?

archae86 wrote:
johnnatash4 wrote:

there was some long winded explanation on part of it being x, part of it being y, depending on their fiscal results this coming year.

In some circumstances, if a company pays out "too much" in dividends the excess has to be accounted for as a return of capital. That means you don't pay current year dividend taxes on that portion, but you have to adjust upward your cost basis, which means you pay for it later when you sell the position.

confused

--
Striving to make the NYC Metro area project the best.

when

camerabob wrote:
archae86 wrote:
johnnatash4 wrote:

there was some long winded explanation on part of it being x, part of it being y, depending on their fiscal results this coming year.

In some circumstances, if a company pays out "too much" in dividends the excess has to be accounted for as a return of capital. That means you don't pay current year dividend taxes on that portion, but you have to adjust upward your cost basis, which means you pay for it later when you sell the position.

confused

When I was 22, a guy in the office told me how say his kids needed eyeglasses. He buys a stock, and sells it once the net gain is what the eye glasses would cost. I asked him yeah but isn't that a short term gain, taxable at ordinary income (meaning the gain would have to be significantly a larger gain than the eyeglasses)? He said no, it's not necessary to file anything, it's not taxable.

I would rather have the explanation given here, than what he told me....lol

Income, including short-term or long-term gains from stocks sold

johnnatash4 wrote:

When I was 22, a guy in the office told me how say his kids needed eyeglasses. He buys a stock, and sells it once the net gain is what the eye glasses would cost. I asked him yeah but isn't that a short term gain, taxable at ordinary income (meaning the gain would have to be significantly a larger gain than the eyeglasses)? He said no, it's not necessary to file anything, it's not taxable.

I would rather have the explanation given here, than what he told me....lol

Most all income, including short-term or long-term gains from stocks sold, should be reported on your tax return. Nontaxable income would be inheritances, gifts, cash rebates on items you purchase from a retailer.

The minimum amount of income (gains) reported to both you and the IRS on 1099 forms is $10.00, but any amount (even less than $10) should be reported on your tax return.

I've never heard of such nonsense as what you say your friend told you.

--
According to the laws of aerodynamics, bumblebees cannot fly. But the bumblebees, not knowing the laws of aerodynamics, go ahead and fly anyway...

well

koot wrote:
johnnatash4 wrote:

When I was 22, a guy in the office told me how say his kids needed eyeglasses. He buys a stock, and sells it once the net gain is what the eye glasses would cost. I asked him yeah but isn't that a short term gain, taxable at ordinary income (meaning the gain would have to be significantly a larger gain than the eyeglasses)? He said no, it's not necessary to file anything, it's not taxable.

I would rather have the explanation given here, than what he told me....lol

Most all income, including short-term or long-term gains from stocks sold, should be reported on your tax return. Nontaxable income would be inheritances, gifts, cash rebates on items you purchase from a retailer.

The minimum amount of income (gains) reported to both you and the IRS on 1099 forms is $10.00, but any amount (even less than $10) should be reported on your tax return.

I've never heard of such nonsense as what you say your friend told you.

Well today if I'm not mistaken, the 1099 "is" reported to the IRS. I believe that in the 90's, it was not? Meaning the cost basis of a security. I dunno it was a long time ago--I bought amazon and qualcomm around 1998 and don't really remember 1099's coming like they do today. But not reporting is cheating, of course.

The best one is when a person rolls a 401k and it has post and pre tax balances. Fidelity f'd that up for my wife, in a branch--one would think they know what to do.

Not to get too off topic but along similar lines, I have always had a mad scramble to spend all the FSA health account, year after year. On the one hand, this means we have not had any huge medical costs or prescriptions. But, we have blown a lot of money on high end prescription sunglasses to use the funds.

My cousin said f that, I just make up my own receipts. I get that it's really your own money withheld, but that imho is reckless, and even says something about the FSA administrator. Why not make it so we can keep the funds and pay taxes? forfeiting is not an option to me.