Correctly accounting for Dividend Re-investments from foreign companies

Charles Day cedayiv at gmail.com
Sat Nov 1 22:38:59 EDT 2008


On Sat, Nov 1, 2008 at 4:09 PM, Rory O'Connor <rory at thewhiteroom.com> wrote:

> I am having a hard time in trying to account for the following
> transaction(s):
>
> 10/22 - Dividend received, ERJ, $47.89
> 10/22 - Foreign tax on dividend received, ERJ, $7.18
> 10/22 - Dividend Re-investment: Shares: 2.379, Price $17.1092, Amount
> -$40.71
>
> I've set up the accounts
>
> Current Assets -> Stocks -> ERJ
> and
> Income ->DRIPs -> ERJ
> and
> Expenses -> Taxes -> Foreign Taxes
>
> I want to track everything if I can (i.e. incl the foreign tax).  It
> appears
> the way to do this would be to do a split transaction in the
> Current Assets -> Stocks -> ERJ account.  So I add Shares: 2.379, Price:
> 17.1092 and Buy: 40.71 with the "account" being Income ->DRIPs -> ERJ
> OK, that's fine.  But when I try to add another line of Account: Expenses
> ->
> Taxes -> Foreign Taxes Buy: 7.18 I cannot figure out how to make the
> transaction balance out.
>

Briefly, you might use 3 splits:
1. Buy 3 shares of ERJ @ 17.1092, amount 40.71, account "Stocks->ERJ'
2. Split of no shares, with 7.18 in the buy amount for account
"Expense->Taxes->Foreign Taxes"
3. Balance those two splits with a line for no shares, 47.89 in the sell
amount for account "Income->DRIPS->ERJ"


>
> Any help is appreciated!
>

Hope that helps,
Charles


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