Reinvested distribution: Div, CG, ROC. Where do the shares go?
I "upgraded" to Quicken for Windows 2019 ... yesterday. I'm running Windows 10. No complaints about the new version. This question would have applied to the Quicken 2016 I have been using.
I have a "managed payout fund" with Vanguard. I just downloaded its IRS Form 1099-R for 2018, and I'm updating the fund's data in Quicken (such the amounts allocated in distributions among Dividends, Capital Gains, and Return of Capital) based on the info in that form. (I'll note that the 1099-R puts ROC distributions in Box 3, that is, "nondividend distributions.")
I'm struggling to figure out how to document the fund's end-of-year distribution. Unlike the monthly ones, which are straight cash payouts, the end-of-year distribution is reinvested back into the fund. One element of this "reinvested distribution" is that shares get added to my holdings in the fund.
In an ordinary "reinvested income" transaction of course, each income category gets its share of (1) shares and (2) the dollar amount of the income. In this transaction, though, the Form 1099-R ascribes about 40% of the dollar value of the distribution to Return of Capital. Wait -- what? Since when did Return of Capital change your share holdings -- in either direction??
A: For purposes of ascribing shares to income category, should I ignore the ROC and distribute the shares only between Div & CG? I'll note that the cash value of the Div & CG income (as reported on the 1099-R) is far lower than the cash value of the whole distribution (about 60% of the total).
If I should include the ROC in the distribution of the shares ... where do I enter its share of those fund-shares? The ROC transaction form has no field for shares. The Reinv transaction form has no field for ROC.
I'm not sure that the Reinv transaction form's "Misc" field would adjust Cost Basis the way a ROC transaction does. Or would the change in the number of shares have the same effect on Cost Basis that an ROC transaction would have?
B: If I do need to enter the value that the 1099-R ascribes to ROC in that reinvested distribution, how should I enter it? What should the ROC portion of this reinvested distribution do to the account's Cost Basis?
Is adding the number of shares going to offset the drop in share price (which I believe does the "heavy lifting" of reducing the account's Cost Basis)?
Should I try to enter a negative number? Is that even possible?
Thanks for looking this over.