Re: A couple of questions..
Hi Smart,
I am on the road, so I can't see my tax documents (on my computer back at home), but IIRC:
- The fund is tax advantaged so guessing the divis are qualified...yes? Sort of. They pass through divi's and they try to get qualified divis. The other "tax advantaged" aspects are that they don't churn their holdings, pick best tax lots in trades, try to get long term capital gains, manage tax loss harvesting etc. - all the things you would do if you were trying to minimize taxes. A lot of their income is from writing options, not just from dividends. So, higher income but also some taxes. Note that it is a monthly payer.
- Some divi's are munis so no federal tax? I don't recall them owning any munis in this fund. their holdings are broad - nvidia, apple, amazon, walmart, - something like 150 companies last I looked. If they hold muni's, it would be a tiny amount. You can see their entire holdings on the eaton vance website eatonvance.com . They have spreadsheets of the holdings for each fund they offer that you can download.
- Some of the divis are return of capital? Yes, I am pretty sure they have some ROC. I haven't dug into it recently, but (again, IIRC), their ROC wasn't destructive.
- Is that all reported by your brokerage? I am pretty sure it is. I don't recall having to contact them for any tax info. I have ridiculously complicated tax returns (foreign holdings, partnerships, you name it) so I try to be diligent in tracking down all the information because I get a lot of inquiries from the IRS.
Hope this helps. I trust that anyone with better information will chime in. |
