how to prevent return of capital transaction type from changing cash balance?
I have an investment acccount with linked cash account. When I enter a returnofcapital transaction to make a non-cash adjustment to cost basis of a security it changes the cash balance in the linked cash account. How I can i prevent this, or reverse it? The transaction type is called 'return of capital and transfer' - rtrncapx. Is there some non-cash transaction I can use to reverse it if there is no other way?
Comments
-
Well, ordinarily you would expect a return of capital to affect cash, though I seem to recall that maybe Canadian tax law has some sort of basis adjustment that doesn't affect cash?
Using the US Quicken product, one way of (mechanically) handling a cashless adjustment of basis would be to enter the return of capital, affecting cash, and then, within the Account where the cash shows up, making an entry decreasing the cash with the offset to that cash decrease being the SAME Account in which you're making the entry: [Name of Account]. This looks like a Transfer of cash between Accounts but by using the name of the Account in which you're making the entry in the Category field, the result is that the cash "magically" is reduced without affecting any other Account or Category in your file.
0 -
Yes, thank you. I just thought Quicken had a cost basis adjustment transaction type that did not affect cash. The situation arises (in my case) when the exchange rate used by Quicken that is auto-downloaded differs from either a) the broker exchange rate, or b) the bank of canada exchange rate. This is guaranteed to happen as I've noticed all 3 sources have slightly different rates and it can actually produce quite a divergence in some cases over many transactions and many years. There are also other things like corporate actions, changes from fifo to average cost method that also bump up or down the actual required adjusted cost basis.
0