Transactions reflecting tax payments, advice re:

[tec]

I'm evaluating Fund Manager as a tracking tool for a set of trust accounts (among other things). Occasionally the trusts pay US federal and state taxes, file amendeds and receive refunds. I need to account for those cash flows.

My sense is that I'll need to select appropriate transactions to pay the taxes from the cash accounts such that the reporting shows the gross performance of the accounts unaffected while the net performance reflects the tax burden. Further it would be appropriate to break out the various performance reducing cash flow types (there are several) in the reporting.

So, (1) do I have the general sense of this correct and (2) if so, can you advise me regarding a transaction structure to implement it?

tia
tec
FM 12.0 Pro (evaluation)

[Mark]

Hi tec,

Thanks for trying Fund Manager. You can either choose to have the tax money reduce your portfolio's performance or not. In general Fund Manager doesn't include the effects of taxes. If you do not want the taxes to reduce your performance, record the money paid as a sell of cash. If you do want the taxes to reduce your performance, record the money paid as a negative valued reinvested distribution of whatever "type" you want. Using the different distribution types would allow you to sum the different amounts spent, such as in the Distribution Summary report.