TDW: TXPDDV vs DIV
I'm going through almost a years worths of monthly statements updating/creating my own portfolio spreadsheets and have come across TXPDDV and DIV. I know both are dividends, but can anyone tell me the difference between them and how they are handled at tax time?
There is no guarantee that the designation showing will be the eventual designation on your year-end tax slip. Often brokerages use default designations for convenience. What they calculate for the tax slip may vary.
I presume you know what a dividend is. The Tax Paid Dividend reflects a cash transfer which you will not have to include in your personal tax return. Sometimes it is a capital gains distribution where the tax has already been paid within the company. Or it may reflect ROC return of capital distributions from income trusts, etc.