Distribution, Account Fee

[Aad]

Hi Mark,

When I enter an account fee as a negative distribution in the cash account then I have no option but to tick the reinvested button. Otherwise the value will be diminished related to a fraction in shares.

Why is this and how does it effect the 'Tax Base'?

Regards, Aad

[Mark]

Hi Aad,

I didn't quite follow this. Why do you have to mark it as reinvested? If you redeemed cash shares to pay for this account fee, it should be marked as reinvested, so as to reduce your number of shares. If you sent in the money, then don't mark it as reinvested.

In general, cash should be tracked at a price of 1, and the shares equal to the value.

Account Fees can optionally increase your tax basis. See "Options / Report Preferences... / Capital Gains / Include Account Fees in Basis". However, if you're recording this in a cash type investment, usually cash investments are excluded from the Capital Gains reports. An account fee recorded in a cash investment would only affect the cost basis of your cash investment.