2020 Share Distributions U.S. Tax Treatment
Navios Maritime Acquisition Corporation is treated as a 'C' Corporation for U.S. tax purposes and our investors receive a Form 1099-DIV.
The table below describes the distributions made by the corporation in 2020 to common shares and series C preferred shares and the reporting of such payments on United States Internal Revenue Service ("IRS") Form 1099-DIV.
The determination of the distribution percentages which constitute a taxable dividend or a nondividend distribution for U.S. federal income tax purposes is not made until after the end of the calendar year. If you are a U.S. shareholder and you received an IRS Form 1099-DIV that does not set forth such amounts, you should contact your broker or your tax advisor.
Shareholders are directed to consult their own tax advisors to determine the appropriate tax treatment with respect to the distributions on common shares and series C preferred shares.
|
Date
|
Total Distribution
(per common share) |
% Reported as
Ordinary Dividend in Box 1a of Form 1099-DIV |
% Reported as
Qualified Dividend in Box 1b of Form 1099-DIV |
% Reported as
Nondividend Distribution in Box 3 of Form 1099-DIV |
|---|---|---|---|---|
|
April 7, 2020 |
$0.30 |
0 % |
0 % |
100% |
|
June 29, 2020 |
$0.30 |
93.4 % |
93.4 % |
6.6% |
|
Oct. 8, 2020 |
$0.30 |
100 % |
100 % |
0% |
|
Feb. 10, 2021 |
$0.05 |
100 % |
100 % |
0% |
Disclaimer
This table and related comments are intended as general information only and do not constitute tax advice. This information was not written or intended to be used, and it cannot be used, by any person as a basis for avoiding federal tax penalties that may be imposed on that person. Shareholders should consult their own tax advisors with respect to the specific tax consequences to them. Navios Maritime Acquisition Corporation makes no warranty either expressed or implied regarding any tax issues of its shareholders
Report of Organizational Actions Affecting Basis of Securities
US tax law requires that we file Form 8937 and furnish a statement to unit holders when we take an "organizational action" that affects the tax basis of our units. We made cash distributions during 2020, an effect of which was a reduction to unit holders' basis in units owned and/or the recognition of taxable gain. We have filed Forms 8937 (a copy of which is available through the link below) and furnish these statements on our primary website in accordance with IRS regulations. Unit holders may be required to reduce the basis in units owned and/or recognize taxable gain. Please consult your tax advisor.