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When a taxable brokerage account is transferred from one broker to another and as the old broker receives( and in turn forward to new broker) the dividend after the transfer as Dividend pay date is after the transfer, but ex-dividend date was before the transfer date.

So question is who report the dividend on 1099 for at the year end ?

Second question, as a dividend is considered qualified-dividend if stock is held for more than 60 days? How does the old broker will know that the stock was held for another 60 days?

Common stock investors must hold the shares for more than 60 days during the 121-day period that starts 60 days before the ex-dividend date, or the date after the dividend.

  • @craig-w thanks, what about qualified or non qualified dividend? – Raj Oct 28 '19 at 13:16
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    That aspect I'm not sure about, which is why I didn't mark your question as a duplicate. – Craig W Oct 28 '19 at 13:20
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    It's new-broker who pays you and should report that, and new-broker knows your holding period (unless you bought and transferred within 60 days of year end so as of 1099 preparation it isn't determined yet). I think old-broker gets a pass on reporting transfer to new-broker because they're regulated, but even if not it doesn't affect you. – dave_thompson_085 Oct 30 '19 at 18:26
  • @dave-thompson-085 thanks, I hope brokerages does not mess up the 1099, they seem to be correting it at any time money.stackexchange.com/questions/107968 – Raj Oct 30 '19 at 20:22

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