Correctly report distributions from Investment Partnerships
The standard reports for Investment Partnerships do not correctly report distributions if the distributions are made into the same account where the Investment Partnership is held.
The only way that distributions show up in the reports is if there is the distribution is made into a transfer account, with the transaction type being labeled as MiscIncX or RtrnCapX. Oddly, the Paid In amounts are correctly reported for the Bought transactions without them being a transfer.
According to Level 2 technical support, this is "by design". Sounds more like a programming mistake, since there is no good design reason to require distributions be transferred out but purchases can be from within the account. In my case, I have investment partnerships that were made at a brokerage, so the cash for purchases and distributions are all within the same account. And creating shadow accounts to carry the cash in order for the functionality to work makes no sense.
If anyone has figured out a way to have this work correctly, please advise. Thanks.
Comments
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I am not sure whether you are talking about something different, but I hove 'units' in some Master Limited Partnerships ('MLP's, known to the IRS as Publicly Traded Partnerships).
When I get a distribution, I simply record it as Return of Capital. Although occasionally a small amount is other income, it keeps Q from thinking it is a dividend that would increase my tax liability; it also allows Q to reduce my basis so I can tell if I am getting close to a negative basis, etc.
Perhaps the difference is that I enter my transactions manually instead of having Q download them. But even then, couldn't you simply change the 'Action' code?
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@stonecliff - I am seeing the exact same behavior (MiscInc vs MiscIncX) and have the exact same confusion about why this would be the case other than a product defect. Were you able to identify a practical workaround? (I agree that setting up a dummy account isn't one…)
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