How to enter a non-dividend distribution

AC

I received a non-dividend distribution which reduces the cost basis of the security that I bought. What is the best way to enter the transaction to reduce the cost basis?

J_Mike

What you have described is a Return of Capital transaction.

I would go back to the original Dividend transaction in the register and edit to change it to a Return of Capital.

AC

The category for the downloaded transaction from the brokerage came in as a dividend, however, the 1099 reported it as a 'Non-dividend Distribution'. A dividend would be taxable but the distribution is not and is used to reduce my cost basis and thus increase the capital gain. What is the best way to modify this transaction so that my cost basis reflects this return of capital?

J_Mike

What you have described is a Return of Capital transaction.

I would go back to the original Dividend transaction in the register and edit to change it to a Return of Capital.

AC

Thank you, problem solved.

williamswanson7

Entered non-dividend distribution as described here as a RtnCap, but Tax Summary report is showing under _DivInc. Any way to keep it from showing as taxable on Sch B other than changing manually in tax program used?

q_lurker

@williamswanson7 I have sometimes seen that changing a transaction (like from Div to RtrnCap) does not always clear the info in all places.  You might need to delete the original transaction and then enter a new RtrnCap transaction.  I can't say that RtrnCap is always treated correctly in all modules of Quicken, since I don't use all such modules.  I don't recall seeing my normal RtrnCap entries in Tax Summary Reports.