Return of Capital

AndreM

Why would an entry against a specific ETF result in adding the $ amount to the cash balance of the portfolio instead of reducing the cost basis?

Jim_Harman

Normally a Return of Capital will increase your cash balance and reduce your cost basis by the same amount. Some brokerages may record these a few days apart. Are you seeing something different?

Note that the RoC is not the same as a Capital Gain distribution.

If you identify the ETF and the date of the RoC we may be able to investigate further. 

AndreM

Jim for example on the TSX position BSO.UN returned a capital of $2400.00 on April 22 for 8000 shares bought in March 2021 and April 2022. My RBC Investment account shows $44570.90 as Book cost. My Q account shows $46979.90 as cost basis. When i enter the RoC, it adds the $2400 to my cash balance instead of changing the cost basis.

AndreM

NotACPA

@AndreM  Are you running Q Canada?  If so, I can get this thread move to that  forum, on this website, where it will get more focused attention.

AndreM

Yes I am running Q Canada

AndreM

PS @NotACPA, how do I access the Q Canada discussion links?

NotACPA

I've asked the Mods to move it.  Should happen shortly. Nothing that you need to do.

NotACPA

At the top of this page, click CATEGORIES and then "Quicken for Windows"  Q Canada is one of the category options there.

DJS

For ROC amounts on ETFs, I use the ROC transaction type but to keep cash balance neutral I first open a Cash Transferred out of Account window so I can enter the same account into the Transfer Account window. Then I switch to ROC type and enter Security Name and amount and hit enter. For Notational distributions I do the same, but enter the amount as a negative. I realize Notational adjustments are not ROC but the process works and aligns with my broker statements.

AndreM

Thanks @DJS, I will try it.