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Selling dividend generating stock during the first 60 days of 2020

Rossi3839
Level 2

There is a question on the Lacerte tax organizer that asks: "Did you sell or plan to sell any dividend generating stocks or mutual funds during the first 60 days of 2020/"  Can give an example of how this should be handled if the answer is ":yes" to the question and also how would the client know the anser to the question? 

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Accepted Solutions
abctax55
Level 15

By looking at their Jan & Feb 2020 brokerage statements (or, asking their financial adviser to do so..)

Capital gain treatment of the dividends on the stocks sold in that 60 day time frame is denied.

 

"Tax software is no substitute for a professional tax preparer"

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4 Comments 4
abctax55
Level 15

By looking at their Jan & Feb 2020 brokerage statements (or, asking their financial adviser to do so..)

Capital gain treatment of the dividends on the stocks sold in that 60 day time frame is denied.

 

"Tax software is no substitute for a professional tax preparer"
Rossi3839
Level 2

Thank you!  I sent a previous reply and additional question but I do not see it posted.... I am not too familiar with how this site works.  I also am not notified via email for responses.  The box is checked to notify me but I am not getting notified.  Can you please give me insight to how to make sure my email address is entered correctly and properly set up?

Thanks in advance!

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blantcpa
Level 1

I would assume that the brokerage firm would issue corrected 1099 showing those dividends as not qualified.

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abctax55
Level 15

And your assumption is incorrect.  They don't, nor are they required to do so.

"Tax software is no substitute for a professional tax preparer"