Re: Dividend Transaction that has both ST & LT gains

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In Reply to: Dividend Transaction that has both ST & LT gains posted by Patty on February 12, 2001 at 19:12:44:

: I received a notification that one of my mutuals had a dividend reinvestment that included both a short-term and a long-term capital gain. Here is how it was reported:

: Dividend reinvestment on 70.494 shares
: LT Gain = $196
: ST Gain = $100
: Shares = 7.046

: I just want to confirm I did the transaction correctly. I did one transaction in the distribution windows as follows:

: value $196 = shares 7.046 x (then I "tabbed" to autocalculate the price)

: Then I did another tranaction as:

: value $196 = shares 7.046 x (then I "tabbed" to autocalculate the price)

: Is this the right way to enter a distribution that had two types of gains?

Hi Patty,
Almost, but not quite... Usually the reinvested price is the same for all
distributions on the same date, so you should have different number of shares
for each distribution type. Usually the fund company also reports how
many shares were for each distribution type. For example, I'd guess that
you had more like 4.666 shares for the LT Gain (196/296 * 7.046) and 2.380
shares for the ST Gain.

Other than this, you did it right: record 2 transactions, and keep
the value and shares exact, and autocalculate the price.

Thanks,
Mark
--
Mark Beiley

Fund Manager for Windows 3.1x/95/98/NT

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