Dividends paid due to a short position.

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  • #3210
    MnisTom
    Participant

    Hi, My question is about the cost basis of a stock that was sold short and paid a dividend. Since I had to pay the dividend do I report the dividend amount in column g on form 8949? If so,is the code in column f L or O ?

    #3211
    kaneohe
    Participant

    https://budgeting.thenest.com/dividends-work-short-positions-31042.html
    According to this,it depends on whether your holding was short-term or
    long term. If short term, adjustment to basis. If long term, miscellaneous deduction on Sch A. Perhaps code B if short term?

    #3212
    MnisTom
    Participant

    Thankyou, holding was short term. I reread the instructions for form 8949 and I believe you are correct that is code B.

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