BBNC dividends are taxable. Shareholders were mailed their IRS 1099 forms for the 2017 tax year at the end of January. Some shareholders received a second 1099 form if they received 7(j) payments and shareholder door prize winnings. The 1099 forms reflect payments including:
- Quarterly dividends (reported in boxes 1a and 1b on Form 1099-DIV)
- 7(j) resource payments (reported in box 3 on Form 1099-MISC)
- Shareholder door prize winnings (reported in box 3 on Form 1099-MISC)
Dividends: BBNC paid a total of $8.70 per share ($870 for 100 BBNC shares) for your March 2017 dividend and $9.35 per share ($935 for 100 BBNC shares) for your June, September, and December dividends. Shareholders owning 100 shares received a total of $3,675 (one dividend of $870 and three dividends of $935) in BBNC dividends for 2017. These are reported on Form 1099-DIV in box 1a (Total ordinary dividends) and box 1b (Qualified dividends). Qualified dividends are eligible for reduced capital gains tax rates.
Quarterly Elder Settlement Trust Distributions: BBNC paid a total of $125 per quarter to original BBNC shareholders age 65 and over. All original BBNC shareholders age 65 and over received a total of $500 in 2017. Elder settlement trust distributions received in 2017 are not taxable and have not been reported on a 1099.
ANCSA 7(j) Payments: At-large shareholders received $12.43 per share ($1,243.00 for 100 shares) 7(j) resource payment in 2017. If you are an at-large shareholder, your 7(j) payment is reported on Form 1099-MISC in box 3 (Other income). The 7(j) payment derives from resource sharing among the 12 regional corporations as required by the Alaska Native Claims Settlement Act (ANCSA). The 7(j) payment appears on a different form because resource revenue payments are not dividends and are not considered investment income. Village corporation shareholders do not receive a 7(j) dividend as ANCSA requires that resource revenue be paid directly to the village corporations.
BBNC cannot provide tax advice and shareholders are encouraged to consult with a tax advisor regarding individual circumstances and applicable federal and state tax requirements. Please remember that it is your responsibility to accurately report your BBNC income on your tax returns.