I sold a considerable block of dividend paying stock In 2012 and 2013. I just got a letter stating I owe tax on a very large amount.
The way I understand it (PSC which morphed to AQUA America) Paid yearly dividends (on which I paid tax every year)
The way I figured the tax was to add up all the purchases (Using First in first out). This totaled ~ 100 shares and the cost was $1500. I subtracted this from the net sale price $2400 so I paid capital gain tax on $900
There were stock splits a few times also.
From their numbers it seems they want to tax the dividends AGAIN.
Note numbers I used were just an example the actual were a bit higher. Thanks for any input especially if I am missing something obvious!
The way I understand it (PSC which morphed to AQUA America) Paid yearly dividends (on which I paid tax every year)
The way I figured the tax was to add up all the purchases (Using First in first out). This totaled ~ 100 shares and the cost was $1500. I subtracted this from the net sale price $2400 so I paid capital gain tax on $900
There were stock splits a few times also.
From their numbers it seems they want to tax the dividends AGAIN.
Note numbers I used were just an example the actual were a bit higher. Thanks for any input especially if I am missing something obvious!
Last edited: