Recording Return of Capital Adj

Arctic Hare
Arctic Hare Quicken Windows Subscription SuperUser ✭✭✭✭
in Investing (Windows)

Could someone please remind me as to best practice to record the transaction highlighted with the red rectangle in the redacted statement below. Note: the transaction has no impact on the cash balance, but when I just use Quicken's Return of Capital transaction, it does affect the cash balance. Also note that all shares of the BMO Canadian Stock Selection were sold in February; that is why it does not appear in the list of mutual funds.

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Answers

  • NotACPA
    NotACPA Quicken Windows Subscription SuperUser ✭✭✭✭✭

    @Arctic Hare I think that I'd be inclined to use the ROC transaction and then expense the money away.

    And, I certainly don't know Cdn tax or investment practices, but I'm curious how there can be no money associated with a "Return".

    Q user since February, 1990. DOS Version 4
    Now running Quicken Windows Subscription, Business & Personal
    Retired "Certified Information Systems Auditor" & Bank Audit VP

  • Arctic Hare
    Arctic Hare Quicken Windows Subscription SuperUser ✭✭✭✭
    https://community.quicken.com/discussion/comment/20486547#Comment_20486547

    The transaction shown in my screen shot references back to a specific automatic reinvestment of dividends transaction from December last year. I'm not on expert on these matters, but my hypothesis is that it is an adjustment for the price at which the new shares were purchased with the dividend income; i.e. it is price correction to correct the adjust cost basis. This is a Tax Free account, so the cost basis is not required anyway and all the shares have since been sold. I recorded it as a removal of RoC + Removal of Cash. I don't foresee this causing any problems into the future. The cash from the distribution never came into the account, which may explain why there is no cash now - it is just a price adjustment. The dividend distribution is only reported as a quantity of units. I actually need to do the P*Q math to determine the $ value of the distribution.

  • CaliQkn
    CaliQkn Quicken Windows Subscription Member ✭✭✭✭

    @Arctic Hare the way you entered the transactions is the only way I know of to accomplish what you needed. Since the account is coded as tax deferred on Quicken, there is no way to do an ROC transaction without affecting cash. A separate cash offset transaction is needed to zero out the cash created by the ROC. If the account was coded as taxable, the ROC transaction would have allowed you to enter the ROC without affecting cash. Never understood why the tax coding in the account made that difference.

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