ADR fee

[OnYourOwn]

I usually import transactions from my brokerage account, but was recently hit with an ADR fee for a stock dividend for a Brazilian company. The download retrieved the stock dividend, but not the fee, which I believe is a foreign investment tax.

How do I record this manually ? My guess I would need to edit the cash investment, as the fee was taken from that, but should I also edit the stock investment to record this fee/tax ?

The dividend was stock, not a cash payout.

[Mark]

Hi OnYourOwn,

Record this in the investment that had the fee. Record it as a negative distribution. Since it is a negative amount, the money will automatically be withdrawn from your default cash account.

[OnYourOwn]

That did the it. Placed under Distribution-Foreign tax, which automatically took from cash account as per what happened. Thanks

[bwccolorado]

How do you enter the ADR Fee without it impacting cost basis? ADR Fees are only deductible on Schedule A, and are not to be added to cost basis.

Thanks

[Mark]

Hi bwccolorado,

Fund Manager gives you control globally on whether or not to include "account fee" type of distributions in your cost basis. From within any report, select "Help / Report Preferences... / Capital Gains", and notice the option "Include Account Fees in Basis". If you leave this on, any distributions of type "account fee" will be factored into your cost basis. If you never want to include account fees in tax basis, then turn this off. If you want this for some cases, and not others, then leave this option on, but record your fees you don't want included as a type other than "account fee". For example, you could use the "Other" type of distribution, or you could rename some of the other distribution types you're not using. See "Options / Distribution Labels...". If you use this "Other" distribution type, just record the distribution value as a negative number, as you do for account fee type of distributions. You can use any of the other distribution types, except do not use "Return of Capital", as that does impact your tax cost basis in all cases.