How to enter a return of capital without increasing cash balance?

Amo1 Member ✭✭✭
edited October 2023 in Investing (Windows)

I have an investment account with Baird and recently sold a unit investment trust. There seems to have been a return of capital (which Baird calls an "accumulated paydown") on each of my 17 lots which reduced my cost basis when I sold the UIT. In reading about this on the Quicken forum, it seems that if I enter a Return of Capital transaction in Quicken, my cash balance will increase, which is not the case, as my cash balance is correct now, and only my cost basis was reduced. Any ideas on how I can manage this in Quicken so my cost basis and my cash balance is correct? Thank you!


  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭

    I don't know if an accumulated pay-down is actually to be treated as a return of capital but assuming that's correct, and assuming that the return of capital was included as part of the proceeds of the sale, then one way of doing this is to enter the return of capital on the same day as the sale, then reduce the proceeds of the sale by the amount of the return of capital. I'd say that's the "most correct" as it properly adjusts the gain or loss on the sale and doesn't affect the cash in the account.

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