distributions

[Ken]

I have ran into something again that always drives me nuts. Its a distribution reported on my clients investments.
She has the form that lists distributions of 242,000 dollars. When I asked her about it she said the money had been reinvested and she never recieved any of it. Whe pressed she said well it was in my account for less than a day and the company reinvested it.

Is there anything I need to do about this? She initially invested 85000 dollars in this and over the years has paid taxes on the intrest and dividends that was reported, but this year they are reporting a distribution of 242,000 dollars.
What if anything do I need to do about this.
I would appreciate any help. This is one area of taxes that I have never liked.

Ken

[S T]

Was there

Is this a retirement account? Was there a 1099R form issued?? Or are you just looking at that multitude of paperwork issued by the stock brokerage showing cash in and withdrawals or distributions, as they move money around.

Keep in mind that some of these accounts have what they call "sweep" accounts. So money flows into and out of as they are receiving dividends/interest and reinvesting, and in between they are holding money in a Money Market or Cash management account.

Seems like the taxable amount would be what is reported on the front page under 1099INT or 1099DIV or 1099B sale of stock gross proceeds. You should have a year end recap sheet issued by the Brokerage firm.



Sandy

[Ken]

distributions

Thanks for answering Sandy. No there is no 1099, only about 5 pages of stuff that does in fact list the intrest and dividends and then the distribution amount kind of stuck on the bottom of page three. I looked at it again yesterday and saw an amount of 500 dollars "taxable income", but I could not make head nor tails on how they come up with that figure.
The problem I have with these things is that no two companys seem to have tyhe same format. They are all different and all very confusing. Plus the older I get, the harder my head gets.

[Brian EA]

The 5 page stuff might have been the end of month statement. The client may have not received the year end statement.. I am sure if it is from a brokerage house there would definitely be a 1099 INT 1099Div and or 1099B.

Have the client call the brokerage house and request additional information. Based on your original post I am almost sure there was a sale.

thanks
brian

[Ken]

Intrest and Dividends

No Brian this is a year end statement. It has the dividend and intrest reported on the front page.
I guess the problem is when I see the word "distribution", I just automatically assume it has to be reported.
I Will go back to her house and look at it again. She is one of the few people I still go to their house to get the information. She had told me that the man she was dealing with had said that it wasn't taxable, but I just dont want to be held accountable if it is taxable and we leave it off.
I'll study it really closely next time and see what I can make of it.

Thanks for your responses. I hav'nt been on here much this year,but I appreciate the fact that I can get help when I need it.