Since it hit me again today and I had countless bookings on my clearing accounts again ( 96😂)
It's the year 2022
And you're happy about your investment in one or more Reit(s). Dividends are diligently trickling into your settlement account every month. You are the king of dividends.
A few months later. Shock STORNO on the clearing account. All dividends gone! What has happened? The clearing account in the red -> panic? No.
Why are dividends canceled?
The negative dividend entry is related to the so-called reclassification. Put simply, the dividend is recalculated because the tax breakdown of the dividends paid is only announced at the beginning of the following financial year. (Division into "taxable" and "tax-free" portions.) As this information is therefore only available in the following year, the recalculation or reclassification only takes place then.
The company must therefore redistribute the amount of money from dividends and capital returns after the end of the financial year, so to speak. (For Canadian and US companies, this usually takes place annually).
The correction of dividends is carried out as a "delta correction" and has no influence on the annual tax certificate for the previous year. Although dividends from the previous year may be affected by the measure. This may result in a tax disadvantage depending on the use of the personal allowance.
When will the corrected dividends be credited?
Normally, the dividend is paid out again in the recalculated amount a few days after the reversal. This can result in several postings, as each payment made is corrected individually. In my example, this happened today within a few hours.
Where can I find information on the tax recalculation?
You can usually find information on the recalculation on the company's website in the Investor Relations section or under Dividends. Just have a look at the IR page of your favorite company.
Dividend reversal and tax-free amount
There may be disadvantages with regard to the personal tax allowance. For example, if the allowance was still used in the previous year but has already been used up in the following year, the regular taxes will apply. (The allowance used in the previous year could therefore be reduced retroactively).
Depending on the constellation, it can therefore happen that a part of the tax-free allowance in the previous year was not used retroactively due to this reversal and the allowance for the current year is used up, although the payment was actually made in the previous year. What does @DerSteuerberater about this?
Do I have to take action?
As a rule, you do not need to take any further action. The broker will ensure that everything is tax-compliant.
PS Thanks to Lisa
Source:
You don't have to know everything, you just have to know where it is.
Have a nice weekend ✅
#dividende
#reit
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