[GNC] Return of capital, lots & accurate gains

[David Carlson]

I thought this discussion was about the fact that certain securities make
cash payments that brokers have to report as dividends on their
clients1099's that are later partially recategorized by the payor as return
of capital after the tax deadline has passed, which may require an amended
1099. I happen to have one of those securities in my portfolio, but it is
in a qualified account so it is merely an intellectual exercise for me.  I
am sure there are many other forms of return of capital, as you point out.



On Mon, Mar 31, 2025 at 6:33 PM Michael or Penny Novack via gnucash-user <
gnucash-user at gnucash.org> wrote:

> On 3/31/2025 5:18 PM, David Carlson wrote:
> > AFIK that issue with RoC is an artifact of US tax law, not GnuCash.
> Can't
> > do much about it.
>
> Not exactly simply "tax law". The problem/confusion is that they are
> still called "dividends". Or do you know of some jurisdiction that taxes
> "return of capital" (*)
>
> Michael D Novack
>
> * It's a matter of point of view. When YOU make a mortgage payment,
> that's part interest expense, part reduction of liability. But from the
> bank's point of view, that's interest income and ROC (on THEIR books the
> mortgage is an asset, and the principle portion of the payment is
> reducing that)
>
>
>
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-- 
David Carlson