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Technology Stocks : Taiwan Semiconductor (NYSE: TSM) -- Ignore unavailable to you. Want to Upgrade?

To: R2O who wrote (659)	7/26/2004 12:28:25 PM
From: William Grady	Read Replies (1) \| Respond to of 684

Can someone please tell me how to report the 84 shares of TSM that I received as a dividend on the 600 shares that I owned. I have called both Ameritrade and Scott Trade and all they could tell me was I need to see a tax consultant. What I want to know is that when I receive my year end statement from my Brokers will it show under dividends both the cash dividend and the stock dividend? In my case I received 84 shares plus a cash dividend received of $53.86. However the broker also charged me $35 for the cash dividend charged so I actually only ended up with $18.86. If it shows 84 shares of stock as a dividend how do I compute the value of the stock? Do I have to report the dividend stock in the year I received it or do I wait until I sell the stock to report it? If I have to report it in the year I received it do I use the value of the stock on 7-15-2004 which is the day it appeared in my account? Or do I have this all wrong and I should be considering this as a 1.14 to 1 stock split that occurred on 6-14-2004 even though I never received the stock until 7-15-2004? I'm totally confused on this and never would have bought this stock in the first place if I had known about the crazy way they pay dividends. I wonder if they realize how much trouble and confusion they cause for stockholders in this country by the way they pay out there dividend. The day after they pay a 14% stock dividend on 6-14-2004 the stock drops 17% and you don't even get dividend stock until 7-15-2004 causing margin calls for some holders. And of my cash dividend of $53.86, I only have $18.86 left after the broker takes out $35.77. And to top it all of I have no idea how to report this for my taxes. TSM, please don't pay any more dividends for awhile, I don't think I can afford any more. Totally Confused Please Help