A portion of the dividends from the American Funds listed below may be eligible for the 20% qualified business income deduction under Section 199A, to the extent that the individual taxpayer has met the 46-day holding period requirement. These dividends are attributable to qualified real estate investment trust (REIT) dividends received by the fund and are reported in Box 5 of Form 1099-DIV.
To be eligible for deduction under Section 199A, a shareholder must have held shares on which the dividend was paid for at least 46 days during the 91-day period that began 45 days before the fund's ex-dividend date (ex-date). The ex-date is the date on which the dividend is deducted from the fund's per share net asset value. For purposes of the holding period, you may not count the day on which the shares were purchased or acquired by reinvesting dividends, but you may count the day the shares were sold.
Funds With Section 199A Dividend Income Included in Total Ordinary Dividends (Total Ordinary Dividends Are Reported in Box 1a of Form 1099-DIV)
Percent of Section 199A Dividend Income Included in Total Ordinary Dividends
American Balanced Fund®
American Funds Global Balanced FundSM
American High-Income Trust®
Capital Income Builder®
The Income Fund of America®
New World Fund