Re: Income Tax effects on investment performance

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In Reply to: Re: Income Tax effects on investment performance posted by Randy Severson on March 27, 2001 at 22:26:16:

: I considered using a fee to record the tax cost for an investement. But I thought the fee would be used in calculating the investment basis. This would cause incorrect calculations.

: Is the assumption correct?

: Thanks

: : : I'm looking for a way to to have Fund Manager help me calculate my investment return "after" paying income taxes on the distributions and proceeds.

: : : Is this possible?

: : : Thanks

: : Fund Manager reports your gains/losses, but does not do anything about actually
: : calculating the tax on these gains/losses. I guess you could record a "fee" for
: : the amount of your paid taxes, and then FM would report performance including
: : this fee.

: : Thanks,
: : Mark
: : --
: : Mark Beiley
: :
: : Fund Manager, portfolio management software for Windows 95/98/ME/NT/00
: :
: :

Yes, the "Account Fee" does factor into your cost basis in the capital gains
reports. Account fees are just negative distributions. These type of
distributions are treated special in the case of cost basis calculations.
You could alternatively record a negative "Other" distribution. This would
not be factored into the cost basis, but would be factored into performance
figures where distributions are included (like yields...).

Thanks,
Mark
--
Mark Beiley

Fund Manager, portfolio management software for Windows 95/98/ME/NT/00

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