Let's assume you buy an ETF or a share late in December, and it provides a dividend between your buying and the end of the year. Let's also assume this dividend is (at least partly) of the type eligible to be a qualified dividend - depending on your holding period: "at least 61 days of the 121 days starting from 60 days before ex-dividend".
When you get your 1099-DIV for the year (typically mid-February), your holding period might not yet be 61 days (if you bought after December 17th or so), but it could become 61 days - or not - depending on your potential sell-decision after the 1099-DIV is provided.
Obviously, the 1099-DIV cannot predict your decision; so either
- specifically you will get yours later than everyone else?
- or the form will list them as 'not-qualified' and you will get a corrected form later?
- or you're out of luck, and they stay listed as 'not-qualified', and you can try to convince the IRS that the form is wrong?
Basically, I'd like to understand if I need to wait for a corrected form, or if I should better avoid the situation to begin with, to avoid losing money.