How do I adjust the cost when Crown Castle Intl Corp was internally adj by TD Ameritrade

Grandma B
Grandma B Quicken Windows Subscription Member ✭✭
in Investing (Windows)
TD Ameritrade reported an adjusted to the cost for my investment in Crown Castle Intl Corp. How do I adjust the cost then in Quicken? I tried a 'return of capital' but that doesn't work - that amount is then added to cash so still off overall.

Best Answer

  • q_lurker
    q_lurker Quicken Windows Subscription SuperUser ✭✭✭✭✭
    Answer ✓
    Ref:  https://investor.crowncastle.com/news-releases/news-release-details/crown-castle-announces-tax-reporting-information-2020

    Was the adjustment something like 1.692/share (assuming you held the same number of shares throughout 2020)?  (That is the three non-div distributions at 0.412 + the 0.456 4th Q non-div dist.)

    If so, RtrnCap IS the correct approach and you would follow that up with a MiscExp transaction for the same amount using the category _DivInc.  I would date both transactions 12/15/2020 or 12/31/2020.

    Those are common transactions for REIT funds.  What was reported as 'dividends' during the year turned out to be non-dividend values when they did end-of-year accounting.  


Answers

  • Tom Young
    Tom Young Quicken Windows Subscription SuperUser ✭✭✭✭✭
    edited April 2021
    WHY did TDAmeritrade adjust the cost basis of Crown Castle Intl Corp?  Understanding that certainly would help here.
    IF the reduction in cost basis comes about because some of the "dividends" paid by Crown Castle Intl Corp in 2020 were in fact determined to be returns of capital and this is being reflected in the 1099-DIV THEN the correct entry to get rid of the phantom cash created by the RtrnCap action would be an entry of a negative dividend in the same amount.

  • Grandma B
    Grandma B Quicken Windows Subscription Member ✭✭
    Was told by TD Ameritrade it's an internal adjust common to REIT funds... that's all I know
  • q_lurker
    q_lurker Quicken Windows Subscription SuperUser ✭✭✭✭✭
    Answer ✓
    Ref:  https://investor.crowncastle.com/news-releases/news-release-details/crown-castle-announces-tax-reporting-information-2020

    Was the adjustment something like 1.692/share (assuming you held the same number of shares throughout 2020)?  (That is the three non-div distributions at 0.412 + the 0.456 4th Q non-div dist.)

    If so, RtrnCap IS the correct approach and you would follow that up with a MiscExp transaction for the same amount using the category _DivInc.  I would date both transactions 12/15/2020 or 12/31/2020.

    Those are common transactions for REIT funds.  What was reported as 'dividends' during the year turned out to be non-dividend values when they did end-of-year accounting.  


  • Tom Young
    Tom Young Quicken Windows Subscription SuperUser ✭✭✭✭✭
    "Was told by TD Ameritrade it's an internal adjust common to REIT funds... that's all I know"
    You would hope that a competent broker could give a more thorough and clearer explanation than that. 
    It's not entirely uncommon that a company, even a non-REIT, determines after year end that some of that cash that they passed out during the year as "dividends" actually included some amount of "return of capital."  Since 1099-DIV's come out some time after year end and generally don't split out the amounts on a distribution-by-distribution level I typically make two 12/31/XX entries, one for the return of capital and one for the reduction in dividend.  Here's an example from last year:

Categories