Abco Corporation declared a $5 per share dividend on September 15 The date of record for the dividend was October 1 (the stock began selling ex dividend on October 2) The dividend was paid on October 15 Jonas is a cash method taxpayer Determine if he must include the dividends in gross income under the following circumstances Jonas bought 100 shares of Abco stock on September 10 for $40 per share He received a $500 dividend on October 15 Jonas still owns the shares at year end Jonas bought 100 shares of Abco stock on August 22 for $40 per share Jonas sold his Abco shares on October 5 for $50 per share Jonas received the $500 dividend on October 15 (note that even though he didn't own the stock on October 15, he still received the dividend because he was the shareholder on the record date) Jonas bought 100 shares of Abco stock for $64 per share on August 10 He received the $100 dividend on October 15 Jonas still owns the shares at year end

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Posted on Oct 22, 2024

Abco Corporation declared a $5 per share dividend on September 15. The date of record for the dividend was October 1 (the stock began selling

Abco Corporation declared a $5 per share dividend on September 15. The date of record for the dividend was October 1 (the stock began selling ex-dividend on October 2). The dividend was paid on October 15. Jonas is a cash-method taxpayer. Determine if he must include the dividends in gross income under the following circumstances:

Jonas bought 100 shares of Abco stock on September 10 for $40 per share. He received a $500 dividend on October 15. Jonas still owns the shares at year-end.
Jonas bought 100 shares of Abco stock on August 22 for $40 per share. Jonas sold his Abco shares on October 5 for $50 per share. Jonas received the $500 dividend on October 15 (note that even though he didn't own the stock on October 15, he still received the dividend because he was the shareholder on the record date).
Jonas bought 100 shares of Abco stock for $64 per share on August 10. He received the $100 dividend on October 15. Jonas still owns the shares at year-end.