When working with short-term transactions, is a "s...
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CLMD
New Member

When working with short-term transactions, is a "sale" of securities equivalent to an "exchange" of securities within a common stock family (Amer Funds) for tax purposes?

I am working with qualified dividends and received dividends that were reinvested weeks before the shares were sold.  Turbo tax indicates I should back the qualified portion of the dividend out of qualified dividends because the security was not held for the specified period.  However, My Edward Jones statement indicates the securities were "exchanged" for an alternate security in the American Funds family.  Does this still constitute a "sale" for tax purposes?
2 Replies
Mike9241
Level 6

When working with short-term transactions, is a "sale" of securities equivalent to an "exchange" of securities within a common stock family (Amer Funds) for tax purposes?

an exchange of funds, same family or not,  is generally a taxable event - sale of one fund to buy another. 

fanfare
Level 15

When working with short-term transactions, is a "sale" of securities equivalent to an "exchange" of securities within a common stock family (Amer Funds) for tax purposes?

strictly speaking, TurboTax is correct

most persons don't bother to do that and report the 1099-DIV qualified number on their tax return.

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