How to enter internal change of cost for REIT investment

Grandma B

I have previously in other years entered a ROC for the internally done cost adjustment for a REIT. I tried this year but the cash amount of the entire investment group (which the REIT is included in) is off by the the amount of the ROC?! This hadn't happened before. It's my understanding to enter a ROC for the amount of the cost adjustment made by the REIT stock - correct?… as had done in previous years. Do I need to adjust the cash amount then too — don't remember doing that before.

Thanks

q_lurker

Typically in my experience, those adjustments come about when cash disbursements during the year were originally characterized as dividends and then later become partially recharacterized as Return of capital (or non-dividend disbursements). As such, I then commonly:

• Enter RtrnCap for $X
• Enter MiscExp for $X with the category = _DivInc.

Both transactions may get dated 12/31/xx or an otherwise convenient date. That first adds the cash then takes it away, reduces the cost basis of the holding, and reduces the reported dividends paid by the security for that year