DIVIDENDS (AAM)

DIVIDENDS (AAM)

SR 94-04 Dated 04/94 Previous Policy

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Dividends which are automatically reinvested to purchase additional stock and interest which is automatically added to a cash account.

Treatment : Consider the dividends or interest as part of the resource to which it was added, e.g., quarterly interest payment of $3.00 is added to previous $500 savings account balance. The total value of the savings account is now $503.

Dividends, interest and royalties paid directly to an individual.

Treatment : Unearned income. see Dividends in Part 511, Common Types of Income.