witholding tax on dividend

mgfew's Avatar


15 Jul, 2017 03:35 PM

How do you enter a dividend and with holding tax and a dividend reinvestment in a transaction
Gross Dividend $108.00
withholding tax $42.75

Dividend re investment 2 shares @65.00
cash remaining 40.25

  1. 1 Posted by Tom Freeman on 01 Aug, 2017 04:03 PM

    Tom Freeman's Avatar

    How is this shown on your statement? Your MD transactions should mirror your statement or account transaction history on the broker's website.

    You can make a dividend transaction and put the withholding in the fee catagory. Then you would do a buy transaction for the 2 shares at $65. I have attached a screen shot illustrating the above.

    You would do it this way because you will trap the $108 income associated with the security. But because of the withholding tax, you only reinvest $65 and want the cost basis of the new share count to reflect this.

    As for the $40.25 cash balance I am assuming you had a cash balance of $40 before the dividend?

    Tom Freeman
    Infinite Kind Support

  2. 2 Posted by mgfew on 01 Aug, 2017 09:10 PM

    mgfew's Avatar

    Thanks indeed. I guess I figured it out but appreciate your response to my question

    Kind regards
    Mel Few

  3. System closed this discussion on 31 Oct, 2017 09:20 PM.

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