1Anno·

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:

https://aktiengram.de/stornierte-dividenden-bei-reits/?fbclid=PAAabFruoFpHv2X6NzyEaFM73ObF0ZyT4w08Z7OBoRfR9_JFUGxRQLbUW4C8I


You don't have to know everything, you just have to know where it is.


Have a nice weekend ✅


#dividende
#reit
$GOOD (-0,12%)
$O (-0,83%)
$MPW (-3,98%)

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43 Commenti

immagine del profilo
@GoDividend then I have to fulfill my duty 😅 With your statement you are absolutely right. When the dividend is recalculated, it can happen that the saver's lump sum is charged twice 😅 The reason behind this is the actual worldwide practice in tax law, that if a year is over, then nothing more can change in the events 😂 Only the stupid Yanks with your Reit rules do not make it with 🫠 Our savings amount is namely destroyed by the recalculation of the withholding tax. The bank assumes that you will get it back. But you usually do not do that and is therefore taxed twice and rightly so. (PP=personal bad luck) You can now find how you want, but the problem is not only we Germans 😁 the Reit dividends are namely only advance payments and are taxed as profit distributions, therefore 🤷🏼 If you now have many Reitanteile, it can also come to that, the Sparerpauschbetrag is completely ausgewipt 😂 There are solutions, but I let me pay 😈😈 No joke aside, most will not itch, because they get so few dividends or if you earn so much on the Reits, you switch to a broker who does not withhold tax, that would be for us Germans a foreign or unregulated broker.
Or one would like to let off steam a bit in the American tax system and submits an American tax return in order to adjust the withholding tax, which is the problem for us here in Germany.
7
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immagine del profilo
Maybe it's important to mention that you should always have some money in the clearing account when you invest in REITS? Precisely because such a minus on the clearing account can quickly become expensive if the dividends are canceled and "booked out"? Or does it not matter... I can not imagine. Otherwise, I already know why, despite all the temptation, the model of this class of shares is too complicated for me and I am not invested. Thanks for the qualitative contribution though. 🙌👀
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immagine del profilo
1
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immagine del profilo
Could you explain the term delta correction in more detail? As far as I know, delta is the euro amount between buying and selling. Or are the cost prices then changed upwards or downwards?
1
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immagine del profilo
I have long read into the broad topic #Reits. Thanks for the info on this. I did not know so actually yet.
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immagine del profilo
Does this affect all US companies that have tax advantages and distribute 90% of their profits, including BDCs?
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