arthur19
New Member

What is date acquired for Dividend reinvestment shares when those shares are added to account on cash payable date given that someone trades for them 3 days earlier?

IRS Instructions for Form 8949 provides the following: On page 2, “To figure the holding period, begin counting on the day after you received the property and include the day you disposed of it.” 

IRS Pub 17 provides the following: For securities traded on an established securities market, your holding period begins the day after the trade date you bought the securities.

Shares are not received in my account until the dividend payable date which coincides with the settlement date for the trade the brokerage executes to purchase the shares.

The two choices are the shares are acquired on the trade date (even though it is not your direct trade) or the payable date of the dividend being received (which is when you receive the shares in your account).