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FPA Crescent Fund Distribution

edited February 2013 in Fund Discussions
FPA Crescent Fund paid a capital gain and dividend distribution on 2 Jan 2013 (ex-dividend date), yet they have included these distributions on the 2012 1099-Div Form (to be reported on 2012 tax return). Is this legal?? I thought anything reported as a 2012 distribution had to be paid on or before 31 Dec 2012.

Comments

  • The record date for this distribution was Dec 31, 2012.
  • Funds that set record dates in October, November, or December, and pay dates in January, must report the income as paid in the old year. This quirk of reporting (which seemingly violates the "cash basis" method of accounting that most individuals use) only applies to mutual funds. If a stock has a record date in December but pays in January, your 1099-DIV is going to show the payment in the new year.

    See Fidelity Tax Statement FAQ http://personal.fidelity.com/planning/tax/content/faqs_brokerage.shtml#2007form
  • Thank you MSF for the explanation & link,....learned something new!
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