How to enter "cash dividend on ##### at daily accrual rate" with blank category

Some of my year end downloads from mutual funds shows this in the memo line, "cash dividend on ##### at daily accrual rate" and the category is blank so all the entries show up as "uncategorized". From my understanding, this is a dividend payment that is projected to be made but not yet paid out (correct me if I am wrong, please). Should I enter this as a dividend and assume it will be paid? Does it not matter - it's just a dividend so enter it as such? Thanks for your help.

Answers

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Are there any "real dollars" associated with these downloads?  Is the cash balance in the Account increasing? 
    I'll admit I'm not really familiar with "cash dividend on ##### at daily accrual rate" though I do know that "income" funds typically accrue interest daily such that when an investor sells such a fund they only get paid dividends for the days they owned the funds.

  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    It is not uncommon for me to actually receive a distribution in the first day or two of January that is taxable as income from the prior year.  It shows up in the annual 1099 tax form as a prior year dividend.  Perhaps this is something similar.  In my case, it s usually MM or bond funds that this would apply to.  Never seen anything like that in a memo line from the fund. 
  • William Heise
    William Heise Member ✭✭
    edited January 6
    Update: When I go into my brokerage account, I see this money is listed simply as a cash dividend which is then reinvested. I am not sure why the entry showed up with no category, but, oh well. I will put them as a cash dividend. Thanks for everyone's input.
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    "I see this money is listed simply as a cash dividend which is then reinvested. I am not sure why the entry showed up with no category, but, oh well. I will put them as a cash dividend."
    If you're not actually seeing an increase in cash then entering them as a straight "Div" wouldn't be correct because that entry would increase cash in the Account.  They would be more correctly as a reinvested dividend.
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