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How do I categorize a Foreign Tax Paid transaction?

ItzRav

Greetings. Running Quicken 2013 Deluxe. I just got my year-end mutual fund statement, and, for the first time, there are a few "Foreign Tax Paid" transactions. Each one shows 0 for shares, 0 for share price, and a positive net amount (dollars). I can't figure out how to record them in Quicken. From looking at the statement, it's clear that the Ending Balance on the statement is NOT affected by the net amount. I tried entering it in Quicken as a Misc Exp transaction, and while that correctly didn't affect the Ending Balance in Quicken, it did reduce the "Cash Balance" in the register (subtracting from it, resulting in a negative cash balance). I can enter it as a "Reminder" transaction, or I could not enter the transaction at all, but that doesn't seem quite right. I'd appreciate any advice. Thanks.

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ItzRav

Sorry this ended up in the "Installing and Updating" area. I had meant to put it in the "Investing" section.

Jonathan Perkins

Wish someone had answered it--I have the same question!

NotACPA

Record a Dividend transaction as a transfer to a non-investment account (I use my CASH account) and, in that cash account record by a transaction to a "Foreign Taxes Paid" category that you create.

q_lurker

NotACPA said:

Record a Dividend transaction as a transfer to a non-investment account (I use my CASH account) and, in that cash account record by a transaction to a "Foreign Taxes Paid" category that you create.

I prefer to keep those two transactions within the investment account (Div and MiscExp). The cash balances out and I can assign the security to the MiscExp transaction.

NotACPA

q_lurker said:

NotACPA said:

Record a Dividend transaction as a transfer to a non-investment account (I use my CASH account) and, in that cash account record by a transaction to a "Foreign Taxes Paid" category that you create.

I prefer to keep those two transactions within the investment account (Div and MiscExp). The cash balances out and I can assign the security to the MiscExp transaction.

But MiscExp can't record to a tax-related category ... and Foreign Tax paid is a deduction on your Form 1040.

q_lurker

NotACPA said:

But MiscExp can't record to a tax-related category ... and Foreign Tax paid is a deduction on your Form 1040.

Of course it can. MiscExp includes a Category field. Don't make me post a pic, please.

NotACPA

@q_lurker,

AAHHH, I was thinking of Tax transactions in a retirement type account .... since only my MF's (held only in retirement accounts) ever generate Foreign Tax Paid transactions.

In a taxable account, you're entirely correct.