Return of Capital transaction should allow one to specify the share lots to which it applies

rgumpertz Member ✭✭✭✭
Why doesn't a Return of Capital transaction allow one to specify the share lots to which it applies (like a sale or transfer of shares)? Given that the Return of Capital affects the cost basis, it really should apply to specific lots!

Currently, Return of Capital is applied to just one lot, which is clearly wrong!

If this isn't fixed properly, Quicken could at least assume ROC transactions apply to all shares and so apply the change proportionately (by lot size) to all lots that PREDATE the ROC transaction.


  • NotACPA
    NotACPA SuperUser ✭✭✭✭✭
    A "Return of Capital" typically comes from ALL shares of the security.
    Why do you believe that it should impact only certain lots?
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • rgumpertz
    rgumpertz Member ✭✭✭✭
    edited January 2020
    For real Return of Capital transactions, affecting all lots that PREDATE the ROC transaction would be fine. Unfortunately, Quicken doesn't do that: it just adjusts one lot!

    The more general solution would be useful in cases where one is forced to use the ROC transaction in cases where one really wants to do some other type of BASIS ADJUSTMENT. For now Quicken tells you to use ROC. Sigh.

    In any case, I would be willing to settle for ROC affecting all lots (that predate the ROC) proportionately to the number of shares.

    ASIDE: if an ROC would take the basis negative, I believe US tax law requires you to change the basis to 0 and report the excess as income. Probably too complex for Quicken to handle.
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