Spillover Dividend

KFP6186

Example: One of my positions is SPY which declares a dividend in December 2022 but does not pay it out until January 2023 (spillover dividend). However, the IRS counts this dividend as income in 2022 and my brokerage tax form counts it as 2022 income as well.
Because of this scenario, when I create an investment activity report in quicken it never reconciles with my year end tax form from my brokerage.
Although not a big deal, I was just wondering how others may have dealt with this same issue?
I suppose I could change the payment date of the dividend received in quicken to December 31, 2022, which would probably mirror the brokerage report?
Any thoughts or ideas?

q_lurker

I do that re-date step.
Usually the year-end statement comes in first and I can reconcile shares and cash to that. Later the tax info comes in and I make a few adjustments like you identify or recharacterizing some dividends to have the tax info more accurate. 

Re-dating the transactions throws off the year end cash balance but it fits my preferences. 

Jim_Harman

Changing the dividend date to 12/31 is the way to handle these situations. 

Quicken has a couple of built in exceptions to adjust its tax reporting for year-end issues. One is Federal estimated taxes. The tax reports assign the payment due Jan. 15 to the previous tax year.

Also IRA contributions made before April 15 can be assigned to either the current or the previous tax year. IIRC there are some situations where this is not handled correctly.

Tom Young

I don't try to make Quicken reports comport to whatever the income tax return shows; you have "real world" transactions and you have "statutory accounting" (income taxes) reporting requirements, two very distinct worlds.

I maintain Excel schedules that reconcile the differences from Quicken to Income Taxes as part of my income tax return preparation, and leave it at that.