Reinvested taxable dividends

Priyo

I noticed Quicken does not capture reinvested dividends as income. Even though they are reinvested, they are income to begin with and reported as such in 1099. Am I making an error in making this statement. Quicken never responded to my question.

q_lurker

@Priyo Below is a screen snip of a basic Income/Expense by Category report (upper) and the drill-down detail for the Dividend values.  In this case the report has been limited to a single investment account for simplicity. 



This clearly demonstrates that reinvestment transactions are included in the basic Income/Expense by Category report when customized to include investment accounts. 

I don't believe you are doing anything wrong on the transaction entry.  I do believe you have something wrong on the report side.  

Priyo

My thanks to Mark 1104 as well for guiding me here. You guys are great.

Mark1104

where do you see that it is not reported as income? run an income report - aren't the reinvested dividends listed there?

are you sure you are looking at a 'taxable' account (where the income would be reported) and not a 'non-taxable' account, where the income would NOT be reported. 

Priyo

Mark, I am a quicken user for over 15 years. That's exactly where I discovered the error, from the income/expense report. Did you face this situation? If you did not, I am making an error and will appreciate any specific help. I thought I mentioned taxable dividends in my question.

Priyo

Furthermore, Quicken has no business in knowing whether the dividend is taxable or not. It is I who make the decision for the taxes. Quicken's job is only to report the transaction as income be is taxable or not.

q_lurker

from the income/expense report.

Did you customize the report to include the investment accounts?  

When properly customized, I find the basic Income/Expense report by Category does include reinvested dividends.  That report defaults to not including investment account.

Quicken will 'KNOW' is a dividend is taxable or not based on your setting for that security (Tax-Free checkbox) and the account in which the shares are owned (Retirement account are typically excluded from tax reports).  For me, Quicken does have 'business in knowing' ...  

Mark1104

i have not run into the problem you describe (27 year user)

1) are you sure you are looking at dividends in a taxable account? 
2) are you sure you did NOT check the 'tax free' check box for that specific security? 

for the 'income and expense analysis' canned report, the reinvested dividends are reported as part of "_DivInc"; I don't see any problems 

Priyo

Mark, I wanted to send you with an attached screenshot. It came back as undeliverable even though the original message said I can reply to you directly. Is there an address, I can resend it too? Thanks

Mark1104

can you just post it here?

Chris_QPW

Priyo said:

Mark, I wanted to send you with an attached screenshot. It came back as undeliverable even though the original message said I can reply to you directly. Is there an address, I can resend it too? Thanks

I wish they would fix that message.  It says that you can reply by email, but that has never worked.

You have to come to the forum (use the link they give you in the email) and post here.
Since you don't have a lot of "forum points" you probably don't have the icon for including a screenshot, instead what you should do is drag the image file to the comment box, and it will attach it to the comment.

Priyo

This was the text of the sent message that came back. Hopefully, I had been able to explain the problem. Please advise.

Dear Mark:

Thanks for your reply. I continue to remain baffled though. Attached is a screen shot of a reinvestment of dividend transaction in a taxable account. It is identified as such when I set it up. I do not see this amount of $102.98 captured in my income/exp report even after I checked all taxable investment accounts in the dropdown list. Curiously however, if I break it down to two transactions, one for the dividend and the other for the purchase of corresponding shares, the dividend part shows up as income in the report. As you can see, the screen only shows a box for dividend income. I do not know where it ends up or what income account it is linked to, but not to ¬_Divinc in my situation.

You wrote you have not faced this problem. I sure am doing something wrong then. But for the life of me, I cannot figure it out. Please throw some light.

Best,

Priyo

Mark1104

I reviewed the screen shot and that all looks correct

please reconfirm what report you are using where you don't see the reinvested dividends.  Please use one of the 'canned' reports and not something you saved and continue to use.

I went to >reports>comparison>Income and Expense by Category and THAT report has the dividends reinvested reflected on the output.

q_lurker

@Priyo Below is a screen snip of a basic Income/Expense by Category report (upper) and the drill-down detail for the Dividend values.  In this case the report has been limited to a single investment account for simplicity. 



This clearly demonstrates that reinvestment transactions are included in the basic Income/Expense by Category report when customized to include investment accounts. 

I don't believe you are doing anything wrong on the transaction entry.  I do believe you have something wrong on the report side.  

Priyo

you are absolutely right. I didn't realize the report does not include investment accounts by default. I will sleep well tonight. Many thanks and much obliged

Priyo

My thanks to Mark 1104 as well for guiding me here. You guys are great.

Priyo

Guys I have another intriguing question to ask you experts. This concerns RMD which, in addition to being a transfer of funds between assets (from the brokerage account to the bank account), has an additional taxable income component Quicken records the transfer all right but does not recognize the income, at least, what I have seen so far. My accountant could not answer it as well. Do you guys have any solution? At present I am keeping a tab through an Excel spread sheet but there must be an accounting resolution. Will appreciate any guidance.

mshiggins

@Priyo please see tha FAQ post for making IRA distributions:

https://community.quicken.com/discussion/7072150/faq-best-way-to-handle-distributions-from-ira-also-rmd#latest

Priyo

Thanks. I am not sure I understood the whole thing. Is there a way you can send me a sample set of entries? that will be most helpful. Thanks again.

Bob_L

Please check the "transfers out" setting for the IRA.  Do that from the edit account dialog with the button at the bottom saying Tax Schedules.  Set it to gross IRA distributions.

Rocket J Squirrel

Bob_L said:

Set it to gross IRA distributions.

Don't do that. Set it to Total IRA taxable distrib. as mentioned in the link referenced above. Quicken's tax planner looks at the taxable, not the gross, distributions.

Bob_L

Yes, my mistake, use taxable distribution instead.  

kjbeck77

I have a stock that has monthly dividends that automatically get reinvested. This particular stock doesn't allow partial shares for reinvestment. Therefore, I always have a little leftover cash in the account after each reinvestment. I don't know how to enter the dividend and the reinvestment so it shows the excess portion of the dividend that wasn't reinvested. I entered the dividend and made a separate transaction for the reinvestment, but that clearly is incorrect as it doesn't deduct the amount reinvested from the amount added as a result of the dividend. Your help would be greatly appreciated!

NotACPA

I'd record the dividend paid, as the total received, and then a 2nd transaction for the purchase of the whole shares using only the amount actually used for that purchase ... not the total dividend.

Rocket J Squirrel

You need 2 transactions either way, but I would do it the other way.

One ReinvDiv transaction for the portion of the dividend that was reinvested, and one Div transaction for the remaining cash.

While either method will give you accurate account balances, using ReinvDiv maintains the accuracy of the Quicken quantity Amount Invested (if it was accurate to begin with), while Div+Buy does not.