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How to Assign "Return of Capital" to a Category

Jeffrey Kirk
Jeffrey Kirk Member ✭✭
edited October 2018 in Investing (Windows)
Novice here.  I would like to assign a "Return of Capital" item to a category, but when I enter the transaction, I do not get the options to enter a category or tag.  Any help?  I have tried changing the register settings, but was unsuccessful.

Comments

  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited May 2018
    There is no such option.  Please expand on your expectation.  Why do you need a category assigned?

    My general observation:  When you buy a security, Quicken seems to treat that as moving an asset from a cash pocket to an "investment" pocket.  Just like a general cash transfer from checking to savings, that specific transaction is uncategorized.  When you sell that security (hopefully for a gain), Quicken treats that as removing the original dollars from the "investment" pocket back to the cash pocket and crediting the profit (or loss) the the _RlzdGain category.  Part of the sale is not categorized; part is categorized.   

    The RtrnCap transaction is a corollary to that.  It is removing part of the dollars from the "investment" pocket back to the cash pocket, thus it is effectively a transfer and not categorized.  

    That is my observation; I have not rigorously validated and confirmed that perspective.  It is also my spin on what I have noticed.  I have never seen any documentation from Quicken developers to validate that viewpoint.  

    Further, I am not a tax pro, CPA, financial guru, etc., so while it makes sense to me, I won't comment on how well-trained, knowledgeable folks might think.  
  • mshiggins
    mshiggins SuperUser ✭✭✭✭✭
    edited March 2017
    q.lurker said:

    There is no such option.  Please expand on your expectation.  Why do you need a category assigned?

    My general observation:  When you buy a security, Quicken seems to treat that as moving an asset from a cash pocket to an "investment" pocket.  Just like a general cash transfer from checking to savings, that specific transaction is uncategorized.  When you sell that security (hopefully for a gain), Quicken treats that as removing the original dollars from the "investment" pocket back to the cash pocket and crediting the profit (or loss) the the _RlzdGain category.  Part of the sale is not categorized; part is categorized.   

    The RtrnCap transaction is a corollary to that.  It is removing part of the dollars from the "investment" pocket back to the cash pocket, thus it is effectively a transfer and not categorized.  

    That is my observation; I have not rigorously validated and confirmed that perspective.  It is also my spin on what I have noticed.  I have never seen any documentation from Quicken developers to validate that viewpoint.  

    Further, I am not a tax pro, CPA, financial guru, etc., so while it makes sense to me, I won't comment on how well-trained, knowledgeable folks might think.  

    +1
    Quicken user since Q1999. Currently using QW2017.
    Questions? Check out the  Quicken Windows FAQ list
  • Jeffrey Kirk
    Jeffrey Kirk Member ✭✭
    edited March 2017
    q.lurker said:

    There is no such option.  Please expand on your expectation.  Why do you need a category assigned?

    My general observation:  When you buy a security, Quicken seems to treat that as moving an asset from a cash pocket to an "investment" pocket.  Just like a general cash transfer from checking to savings, that specific transaction is uncategorized.  When you sell that security (hopefully for a gain), Quicken treats that as removing the original dollars from the "investment" pocket back to the cash pocket and crediting the profit (or loss) the the _RlzdGain category.  Part of the sale is not categorized; part is categorized.   

    The RtrnCap transaction is a corollary to that.  It is removing part of the dollars from the "investment" pocket back to the cash pocket, thus it is effectively a transfer and not categorized.  

    That is my observation; I have not rigorously validated and confirmed that perspective.  It is also my spin on what I have noticed.  I have never seen any documentation from Quicken developers to validate that viewpoint.  

    Further, I am not a tax pro, CPA, financial guru, etc., so while it makes sense to me, I won't comment on how well-trained, knowledgeable folks might think.  

    My computer is currently down; am typing on cell. I will try to elaborate when net comes back up. In the meantime, I really appreciate the responses. I am truly confused as to how Q works re reports etc
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    edited October 2018
    I concur fully with q.lurker's assessment.  There's no Category, because Q uses categories for income and expense transactions ... and a Return of Capital leaves you no richer, or poorer, than before the RtrnCap was recorded.  You just moved money from 1 pocket to another.

    If you want to see how this transaction impacts your ability to spend, look at a "Cash Flow" report.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
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