Return of Capital

AndreM
AndreM Member ✭✭
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?

Answers

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    edited April 26
    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. 
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  • AndreM
    AndreM Member ✭✭
    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
    NotACPA SuperUser ✭✭✭✭
    @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.
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • AndreM
    AndreM Member ✭✭
    Yes I am running Q Canada
  • AndreM
    AndreM Member ✭✭
    PS @NotACPA, how do I access the Q Canada discussion links?
  • NotACPA
    NotACPA SuperUser ✭✭✭✭
    I've asked the Mods to move it.  Should happen shortly. Nothing that you need to do.
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • NotACPA
    NotACPA SuperUser ✭✭✭✭
    At the top of this page, click CATEGORIES and then "Quicken for Windows"  Q Canada is one of the category options there.
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • DJS
    DJS Member ✭✭
    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
    AndreM Member ✭✭
    Thanks @DJS, I will try it.