Re: Capital Gain Distribution

[ Message Board ] [ Archives ] [ Search ]

Posted by Sean Phillips on April 13, 2007 at 10:01:02:

In Reply to: Re: Capital Gain Distribution posted by Mark on April 12, 2007 at 16:56:49:

: So, to make sure I understand...

: - You received no cash.

: - You are required to pay taxes on this distribution you didn't receive in cash.

: - Your cost basis in your remaining shares has increased by the amount of this distribution.

: - You own the same number of shares now as before.

: If all of the above is correct, I would suggest recording it with the combination of 2 transactions:

: 1) A reinvested distribution of type 'capital gain'. You can pick a number of shares that works with the closing price on the transaction date and the distribution amount.

: 2) Record a split. Assuming you owned X shares before, and you used Y shares for the reinvested distribution, you currently own X + Y shares, but you really end up with X shares again. The split ration would be "X" for "X + Y" shares.

: Thanks,
: Mark

Yes, this is correct. I will try what you suggest.

Thanks, Sean

Replies: