Dividends
What did IQSTEL announce?
A pro rata stock dividend of 75,482 shares, equal to 1.645% of the shares outstanding before the distribution.
How many shares did I receive?
You received 0.01645 shares for every share you owned on the record date.
Is this dividend taxable?
No. The dividend is nontaxable under IRC §305(a).
Do I need to adjust my cost basis?
Yes. Your total basis remains the same, but your per-share basis decreases according to the formula:
New Basis per share = Old Basis / 1.01645
Where can I find the official IRS form?
The company has posted IRS Form 8937 at the bottom of this section, where it will remain available for 10 years.
Do I need to take any action?
No. Your brokerage account will automatically reflect the additional shares. You may wish to consult your tax advisor regarding basis adjustments.
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