Handling Return of Capital in Gnucash
Alton Brantley
alton.brantley at gmail.com
Tue May 6 18:14:38 EDT 2014
I didn't see any further discussion of handling the Return of Capital in this list, so I struggled a bit to figure out how to manage it. Here's what I do:
I received a Total distribution of $2/shr for 100 shares of XYZ, 1.50/shr is qualified Dividend and 0.50 is Return of Capital. I bought XYZ for $75/shr
1. Credit the Income:Dividends:XYZ for the full distribution
Div Distribution Income:Dividends:XYZ $200.00
Record DIstribution Brokerage $200.
2. In the Stock Account, enter the following splits:
A. Reduce the Income:Dividends:XYZ by the total return of capital
B. Reduce the XYZ account by the total return of capital
STOCK:XYZ
Div Return of Capital Income:Dividends:XYZ $50.
Dist Reduction of Basis STOCK:XYZ $50.
If The Original Purchase of 100 Shares XYZ at $75 is put into a lot, after the 2nd transaction above
is entered, there will be a negative gain in the amount of the return of capital.
These transactions will have the following two effects
Income:Dividends:XYX will show the original Distribution Dividends - the Return of Capital
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