Sunday, January 18, 2009

Qwest Announces Tax Treatment for 2008 Dividends

Qwest Communications announced the expected tax treatment for its 2008 dividends. During 2008, Qwest paid quarterly dividends on its common stock that amounted to $0.32 per share. For United States federal income tax-reporting purposes, the company will report the 2008 dividends as non-taxable distributions.

Qwest said non-taxable distributions are generally treated as a return of capital to the extent of a shareholder's basis in his or her shares. Accordingly, these non-taxable distributions reduce that tax basis. Once a shareholder's basis is reduced to zero, non-taxable distributions generally will be taxed as capital gains.

Qwest announced a common stock dividend of $0.08 that on Dec. 11, 2008, with a record date of Feb. 13, 2009 and a payable date of March 6, 2009. This will be reported for income tax purposes in 2009.