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How to remove _Divinc category from a Return of Capital transaction

M C CrockettM C Crockett Member ✭✭✭
edited October 2018 in Investing (Windows)
I upgraded to Quicken Premier 2017 and discovered that the _Divinc category had been assigned to a Return of Capital transaction that occurred in January 2016.  This results in the transaction being reported as taxable income in the Tax Schedule Report.

The problem with this particular investment is that the transaction is first reported as a dividend that is used to buy additional shares.  A week or so later, you receive a notification regarding how much of the dividend is a Return of Capital.  Generally, 100% of the dividend is a Return of Capital.

This is a quarterly event, I'm not sure why this one transaction is tagged as being a _Divinc.  How do you remove a _Divinc category?

Comments

  • mshigginsmshiggins SuperUser ✭✭✭✭✭
    edited March 2017
    What investment transaction type, Div, DivX, or return of capital?
    Quicken user since Q1999. Currently using QW2017.
    Questions? Check out the  Quicken Windows FAQ list
  • NotACPANotACPA SuperUser, Windows Beta Beta
    edited October 2018
    You select the incorrect transaction, edit it and assign a different category.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • q_lurkerq_lurker SuperUser ✭✭✭✭✭
    edited December 2016

    You select the incorrect transaction, edit it and assign a different category.

    (actually you would assign a different 'action' -- the category flows from the action -- and may need to delete and re-enter the transaction)  ... and if it part Div and part RtrnCap, you break it into two transactions.  
    This is a quarterly event, I'm not sure why this one transaction is tagged as being a _Divinc.
    Because that was the way the brokerage sent it?
  • J_MikeJ_Mike SuperUser ✭✭✭✭✭
    edited December 2016

    You select the incorrect transaction, edit it and assign a different category.

    As q.lurker notes - "....may need to delete and re-enter the transaction" - since usually QWin does not permit simple editing to change the Action type of a transaction.

    For this type of 'editing', I have found it convenient to use the Cut/Paste sequence. This preserves critical info such as date, security name, amount and memo (if any). You change the "Enter Transaction:" field and hit enter.
    QWin & QMac (Deluxe) Subscription
    Quicken user since 1991

  • M C CrockettM C Crockett Member ✭✭✭
    edited January 2017
    The problem is that Quicken merges the dividend and buy transaction returned in the OFX file into a reinvest dividend transaction and assigns the _Divinc category to the transaction.

    If you need to split the reinvest dividend transaction into two or more transactions in order to record the dividend or a portion of the dividend as a return of capital, you need to change the reinvest transaction to a buy transaction to remove the _Divinc category from the original transaction and then create the necessary return of capital and dividend transactions.

    Changing a reinvest dividend or dividend transaction to a return of capital transaction does not clear or change the _Divinc category assigned to the transaction.  And, as a result, the transaction is erroneously reported as taxable income in the Tax Schedule Report.

    Thanks to q.lurker and JM for pointing me in the right direction.
  • NotACPANotACPA SuperUser, Windows Beta Beta
    edited December 2016

    You select the incorrect transaction, edit it and assign a different category.

    I change the action all of the time.  Fund LT Cap Gain transactions routinely get downloaded as Div's ... and I change them.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • M C CrockettM C Crockett Member ✭✭✭
    edited December 2016

    You select the incorrect transaction, edit it and assign a different category.

    NotCPA:  You can change any investment transaction that has been classified as _Divinc to any other type of investment transaction with the exception of a Return of Capital.

    A Return of Capital is somewhat unique as it is a transaction for which Quicken Windows has not defined an "_*" category.

    When imported into Quicken Mac, Return of Capital transactions are assigned the category of "Investments:Return of Capital".  This category is neither income or expense and is not tax-related, i.e. assigned to a line in a tax form.
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