DRIP Wizard has a built-in Tax Report system that gives you all the information you'll need file your taxes quickly and easily.
 
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Tax Summary

Taxes were once a taboo topic for anyone investing in DRIPs.  But luckily, the DRIP Wizard's Tax Summary feature automatically generates a tax report for any time-frame.  The report includes all the information that you will need to file your taxes.

To use the feature, simply press the Tax Summary button.  Then enter the start date and end date (e.g. 1/1/99 through 12/31/99), press the Generate button.  The DRIP Wizard will then go through each of your stocks and transactions to find all relevant tax information.  It will then assemble a report that you can view or print.  The report will itemize all transactions which account for the following:

  • Dividend Income:  All dividend income is listed for the period.  Each transaction date, type, and amount is shown.  They are sorted by company then by date.  All transactions that qualify as dividend income will be listed--which can be more than just dividends. 

  • Capital Gains:  Two separate areas itemize all transactions which were the source for Capital Gains.  The areas are separated by holding period of the shares.  Zero to 12 months is a short-term capital gain.  Over a year holding is a long-term capital gain.

  • Income Deductions:  Some small transaction fees and other fees can be deducted from your income.  They will be listed in this section.

To do this by hand would take hours!  And on years when you sell shares, it becomes almost impossible.  Luckily the DRIP Wizard does it within seconds, at the click of a button!

See the tax summary example below.  Note the sale of BUD on 7/16/03.  Capital Gains are itemized and automatically calculated by DRIP Wizard (don't try this by hand!).


Total Ordinary Dividends = $872.81        
(report on 1040 Form, Line 9)       
Date  Account  Transaction Type  Amount   
1/8/2003 Abbott Laboratories Commission - Company Paid $0.50  
2/21/2003 Abbott Laboratories Dividend Reinvestment $68.06  
2/21/2003 Abbott Laboratories Fee - Company Paid $1.00  
4/10/2003 Abbott Laboratories Commission - Company Paid $0.56  
5/23/2003 Abbott Laboratories Dividend Reinvestment $76.24  
5/23/2003 Abbott Laboratories Commission - Company Paid $0.52  
7/8/2003 Abbott Laboratories Commission - Company Paid $0.48  
3/10/2003 Anheuser-Busch Companies Dividend Reinvestment $45.69  
6/9/2003 Anheuser-Busch Companies Dividend Reinvestment $46.48  
2/3/2003 Bristol-Myers Squibb Company Dividend Reinvestment $35.25  
5/1/2003 Bristol-Myers Squibb Company Dividend Reinvestment $41.72  
4/3/2003 Coca-Cola Company Dividend Reinvestment $29.00  
7/3/2003 Coca-Cola Company Dividend Reinvestment $30.12  
3/17/2003 Consolidated Edison Dividend Reinvestment $121.77  
6/16/2003 Consolidated Edison Dividend Reinvestment $126.43  
1/10/2003 Motorola, Inc. Dividend Reinvestment $11.46  
3/10/2003 Motorola, Inc. Dividend Reinvestment $150.00  
4/10/2003 Motorola, Inc. Dividend Reinvestment $12.25  
7/10/2003 Motorola, Inc. Dividend Reinvestment $13.00  
2/3/2003 William Wrigley Jr. Company Dividend Reinvestment $29.31  
5/1/2003 William Wrigley Jr. Company Dividend Reinvestment $32.96  
       
7/16/2003 SELL 100.0 shares of Anheuser-Busch Companies at $52.0 per share.   
Short-Term Gains=$29.13 from the sale of 15.5864 shares.     
(report on Schedule D, Part I)       
Long-term Gains=$2,818.23 from the sale of 84.4136 shares.     
(report on Schedule D, Part II)       
Original  Cost Basis  Number of  Short-Term  Long-Term 
Buy Date  per share  shares sold  Cap Gain  Cap Gain 
1/9/1995 13.303503 38.1856   $1,477.65
3/9/1995 14.2815 0.2672   $10.08
4/9/1995 14.6875 10.2128   $381.07
6/9/1995 14.094 0.3452   $13.09
7/9/1995 13.875 10.8108   $412.16
9/9/1995 14.625 0.45   $16.82
10/9/1995 15.844 9.4672   $342.30
12/9/1995 16.5315 0.464   $16.46
1/9/1996 16.8125 3.4182   $120.28
4/9/1996 16.594 0.0638   $2.26
1/9/2002 45.9 3.268   $19.93
3/8/2002 49.32 0.8227   $2.20
4/10/2002 52.05 2.8818   ($0.14)
6/10/2002 51.7 0.7977   $0.24
7/9/2002 50.7 2.9586   $3.85
9/9/2002 53.37 0.8291 ($1.14)  
10/9/2002 52.78 2.842 ($2.22)  
12/9/2002 49.66 0.905 $2.12  
1/9/2003 49.8 3.012 $6.63  
3/10/2003 47.07 0.9707 $4.79  
4/9/2003 46.99 3.1922 $15.99  
6/9/2003 52.42 0.8867 ($0.37)  
7/9/2003 50.87 2.9487 $3.33  
       
Total Deductible Investment Expenses = $30.81      
(report on schedule A, line 22)       
Date  Account  Transaction Type  Amount   
2/21/2003 Abbott Laboratories Fee paid by company $1.00  
3/3/2003 Bristol-Myers Squibb Company Fee paid by you $2.99  
6/2/2003 Bristol-Myers Squibb Company Fee paid by you $2.99  
3/3/2003 Cisco Systems Fee paid by you $2.99  
6/2/2003 Cisco Systems Fee paid by you $2.99  
3/15/2003 Fidelity Overseas Investment Expense $17.85  
       
Total Undistributed Long-Term Gain = $178.85      
(report on schedule D, line 11)       
Total Tax Paid on this Gain = $35.50        
(report on 1040, line 49)       
Date  Account  Cap Gain  Tax Paid   
5/15/2003 Fidelity Overseas $178.85 $35.50  

 

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