[GNC] Handling Return of Capital in Reinvested dividends

John C jcoppock at tds.net
Sat Apr 14 22:29:57 EDT 2018


Gnucash v2.6.17 on Windows 10 doesn't handle Return-of-Capital 
transactions on a lot-by-lot basis.  I'm not sure about v3.0.
The total basis can be reduced in a transaction but the gains/losses 
won't be calculated correctly.

On 4/14/2018 1:14 PM, Alton Brantley wrote:
> I am trying to deal with Return of Capital events happening over a series of dates, therefore a series of lots.
> For whatever reason, I am not able to adjust individual lot amounts.
>
> Example:
> Tx 0:January 1,2017
> $1000 DR Stock:XYZ Corp 100 sh @ $10/shr
> $1000 CR Cash
>   And in ACTION->View Lots make this Lot 0
>   
> Tx 1: March 1,2017
> $10 DR Cash 	
>               Dividend for Reinvestment
> $10 CR Income:Dividend:XYZ Corp
>
> $10 DR Stock:XYZ Corp 1 sh@ $10/shr
> $10 CR Cash
>   And in ACTION->View Lots make this Lot 1
>
> Next 3 transactions identical to Tx 1
> Tx 2: June 1,2017  (Lot 2)
> Tx 3: Sep 1,2017   (Lot 3)
> Tx 4: Dec 1,2017   (Lot 4)
>
> Now, I have 104 shares of XYZ purchased over 12 months at $10/shr ($1040) in 5 Lots.
>
> Then, in Jan 2018, my brokerage statement shows that $20 of the $40 Dividend was Return of Capital.
> I then enter the transaction
>
> Tx 5: Jan 31, 2018
> $20 DR Income:Dividend:XYZ Corp
> $20 CR Return of Capital:XYZ Corp
>
> So my total investment in XYZ Corp is now $1020 in 5 lots (100,1,1,1,1)
> and my $20 gets allocated pro rata (100/104*$20, 1/104*$20, etc) or ($19.23, 0.19,0.19,0.19,0.20).
> The last amount is adjusted up a penny because of small fractions to add up to $20.
> (In real life, the share price varied each quarter so fractional shares were purchased).
>
> The problem happens in the lots mechanism. I now want to enter the following Transaction:
>
> Tx 6:
> $20       DR Return of Capital:XYZ Corp
> $19.23 CR Stock:XYZ Corp  Memo:this is ROC for Lot 0
> $ 00.19 CR Stock:XYZ Corp  Memo:this is ROC for Lot 1
> $ 00.19 CR …
> $ 00.19 CR …
> $ 00.20 CR …
>
> When I open ACTION->View Lots, none of the CREDIT splits show up for me to put into their appropriate lots.
>
> I don’t want to do a buy/sell of each lot, because I lose date tracking.
>
> It would be nice if the Lots would show all Tx splits for Stock:XYZ Corp, even the ones with 0 shares at 0 cost per share.
> It appears my only option is to hold the ROC CR transactions until I sell XYZ Corp, and then incorporate them into
> the capital gain/loss reconciliation.
>
> Any other suggestions?
>
>
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