How can I record an ETF phantom distribution in Quicken?
Heinz F
Quicken Windows Subscription Member
See attached for further details on phantom distributions.
ETF distributions are included on T-slips and taxed. Phantom distributions are not paid out but taxed and increase the cost basis (ACB) to prevent double taxation.
ETF distributions are included on T-slips and taxed. Phantom distributions are not paid out but taxed and increase the cost basis (ACB) to prevent double taxation.
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Best Answers
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The last paragraph of your attachment is actually a very good summary of how it works. In Quicken, you would use a Return of Capital transaction and then offset it with a separate appropriate income transaction. In the RoC transaction, enter the amount of the cost adjustment as a negative number. This will increase the cost basis and reduce cash. The offsetting transaction would be the appropriate income transaction. According to your attachment, most of the time, the income would be coded as capital gains.1
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Thank you Damian for your prompt response and explaining the solution to my problem.
Heinz F0 -
@Heinz F how are you entering that transaction? If you enter it directly on the new transaction row, it doesn't work. In your register, click on the "Enter Transactions" button at the upper left. It should open a transaction window. Choose the "Return of Capital" transaction and fill in the appropriate information, including the negative amount. It should take. If not, it could be a difference between the US and Canadian versions, but I wouldn't think so.1
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@Heinz F - you are very welcome. Glad you got it working.1
Answers
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The last paragraph of your attachment is actually a very good summary of how it works. In Quicken, you would use a Return of Capital transaction and then offset it with a separate appropriate income transaction. In the RoC transaction, enter the amount of the cost adjustment as a negative number. This will increase the cost basis and reduce cash. The offsetting transaction would be the appropriate income transaction. According to your attachment, most of the time, the income would be coded as capital gains.1
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Thank you Damian for your prompt response and explaining the solution to my problem.
Heinz F0 -
I tried to enter the RoC amount of the cost adjustment as a negative number which Quicken does not accept and changes it to positive. Would you have any other suggestions to solve this problem?0
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@Heinz F how are you entering that transaction? If you enter it directly on the new transaction row, it doesn't work. In your register, click on the "Enter Transactions" button at the upper left. It should open a transaction window. Choose the "Return of Capital" transaction and fill in the appropriate information, including the negative amount. It should take. If not, it could be a difference between the US and Canadian versions, but I wouldn't think so.1
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This is now working, thank you for the advice0
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@Heinz F - you are very welcome. Glad you got it working.1
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