Track Qualified Dividends
Schedule D reporting is kinda useless if we can't track Qualified Dividends from Ordinary Dividends
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Quicken can't figure out for itself whether dividends are qualified or not, since that depends in large part on where the dividends come from and in the case of mutual funds how the fund is managing the underlying investment that generated the dividends they're passing along. So Quicken would have to be told when the dividend transaction is downloaded whether it's qualified or not.
And when I checked my Fidelity account just now I could see no way to determine whether the dividends I have already received this year are qualified or not, so I'm not sure brokers bother to make that determination before it's time to send out the 1099s at tax time. If that's the case, then there's no way for Quicken to do this.
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It is Schedule B, not Schedule D. I was curious of why I have never seen brokers report this information before the end year on the 1099. So I looked up the rules, and they are mind bending, especially if you are talking about a fund and not an individual security.
The rough description is something like this.
- Company has to be qualified.
- Company has to determine what is actually qualified. There are exceptions like if it was a true dividend paid from earnings and profit, not return of capital.
- You have to have held the security for 60 days in a window of 121 days.
- If it a fund, the fund has also have held the security for that same period of time.
- And for a fund this has to be determined for every security/company in that fund.
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