Limited Partnership

In an IRA brokerage account, I purchased a position in a Limited Partnership. Does anyone see a problem if I just post Partnership Distributions as Dividends?

Best Answers

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    Answer ✓
    Or to put it another way, it depends on how the Partnership distributions are taxed and whether you are relying on Quicken for tax information.

    One thing you might do would be to record the distributions as Dividends in Quicken when you receive them and then record adjustments at the end of the year when you receive the tax info from the partnership.
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  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    Answer ✓
    Because this is internal to an IRA account, I doubt there is anything the tax gurus would raise. (Never hurts to ask.)  

    The catch I could imagine within Quicken might be in its performance metrics. A dividend would be seen as a straightforward return’ value. A distribution that is part income (dividend or interest) and part ‘return of capital’ (not current income but rather getting some of your investment back) could be treated differently by some investment performance measures. I have not checked that lately. 

Answers

  • splasher
    splasher SuperUser ✭✭✭✭✭
    Whether that is appropriate would be a question for the tax wizards on the TurboTax forum, TT Forum, Quicken is just of record of what has been done (appropriately or inappropriately).
    -splasher  using Q since 1996 -  Subscription  -  Win10
    -also older versions as needed for testing
    -Questions? Check out the  Quicken Windows FAQ list
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    Answer ✓
    Or to put it another way, it depends on how the Partnership distributions are taxed and whether you are relying on Quicken for tax information.

    One thing you might do would be to record the distributions as Dividends in Quicken when you receive them and then record adjustments at the end of the year when you receive the tax info from the partnership.
    QWin Premier subscription
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    Answer ✓
    Because this is internal to an IRA account, I doubt there is anything the tax gurus would raise. (Never hurts to ask.)  

    The catch I could imagine within Quicken might be in its performance metrics. A dividend would be seen as a straightforward return’ value. A distribution that is part income (dividend or interest) and part ‘return of capital’ (not current income but rather getting some of your investment back) could be treated differently by some investment performance measures. I have not checked that lately.