How Should Income Received from a Limited Partnership/Venture Capital Fund be Recorded?
I invested in a venture capital fund in 2004. The fund invests in startups primarily in North Carolina. When the fund exits a position, they send out a check to the investors, but they never state explicitly what type of income it is. I would like to record the income with the correct tax category in Quicken. When I have asked the fund managers to define what the income is (dividend, interest, return of capital, qualified dividend, etc) they can't tell me specifically and typically say to just consult with my accountant. The most common suggestion I get from them is to consider it Return of Capital. I do my own taxes so I don't have an accountant to consult. It is not that big a deal because the tax gets taken care of via the K1, but I would like to have information in Quicken to show the overall return I am getting on the investment. The fund should be liquidated within 18 months, so it is not that big a deal, but I was wondering if anyone out there has an investment like this and knows how to properly record the proceeds into Quicken.