Same stock in multiple accounts (tax free and taxable)

Pflugrad

How can the dividends be properly recorded as tax free or taxable when the same stock is held in taxable and tax free (IRA) accounts?

Sherlock

I suggest you open the IRA account, press Ctrl + Shift + E, and choose Yes for Tax deferred.

Pflugrad

Yes I already setup the IRA accounts indicating Tax Deferred. But the same stock is in the IRA account as well as the Taxable account. But the "reports" do not separate the dividends and interest.

Thanks

Bob_L

Tax Reports should not show the IRA dividends.  Is that what you are looking at?

NotACPA

Whether the dividend is taxable or not is determined by the Account type ... not the stock type.

I have the same stock (and the same funds) in both my taxable account and in my Rollover IRA ... and the dividends are handled correctly for each.

You do NOT, as some have suggested here, need 2 different stocks (one taxable and one not) for what is, in reality, the same stock.

John16

I have the same problem as Plugrad. I have 3 IRA accounts each with Account Type=Traditional IRA and tax-deferred is checked in Account Details/General window. When I do reporting, some dividends appear in the _DivInc category and others are in the _DivIncTaxFree category based on whether or not the security is marked as Tax Free in the Edit Security Details window.

For example, IRA1 is a Traditional IRA marked as Tax Deferred. It contains the XYZ mutual fund and the ABC Company, neither of which are marked as Tax Free. In the Itemized Categories Report, both securities' dividends appear in the _DivInc category.

IRA1 also contains the RST mutual fund and the MNO Company, which are both marked as Tax Free. In the Report, those positions' dividends are in the _DivIncTaxFree category.

I have about a dozen securities held in both tax-deferred and taxable accounts.

I am running Quicken, R53.32 Build 27.1.53.32. I will post screen shots if requested. Comments?

Chris_QPW

Let me sate something that might not be obvious. In reality if you have a taxable security in a deferred tax account it is not treated any differently than if it was in a taxable account. The magic if you can call it that, is when you pull up a tax report quicken will not include tax deferred accounts by default. Therefore anything in that account won't be counted against your taxes. If the user chooses to do the wrong thing and go into the customizations and include a tax deferred account then of course it will be reporting them as if they were taxable.

As for the setting on the security where it says non-taxable that security itself has to be non taxable, not the fact that in the given account like a tax deferred account you don't pay taxes.

John16

Ah Ha! The trick is to run a Tax Report, not an Income by Category report as I was doing. I'll use it to reconcile my taxable dividends and interest with my broker's 1099s. (I'm retired, it's cold outside, and I have time on my hands.)

Thanks for your fast turnaround and help Chris.