I have an investment in an index fund (EFT), iShares CDN LargeCap 60 Index Fund. The annual tax slip (T3) I receive for this fund shows a capital gain. I did not receive any cash from this capital gains distribution, nor did it increase the number of units I hold in the fund. What I would like to know, is how to enter this as a transaction in Quicken 2006. The only effect of the transaction should be to increase the cost basis, since it does not generate cash or shares. Can anyone help me out?
Capital Gains Distribution in an ETF
Apr 10, 2007
2 Replies
I'm guessing here as have no first hand experience. Am assuming you will be taxed on the CapGain?. Record a CapGain transaction followed by a Return of Capital transaction - the ROC is a negative amount offsetting the CapGainn. The net is zero to your cash balance and the negative ROC increases your cost basis.
I tried this and it gives me the correct reports. Thanks.
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