REITS and REIT mutual funds "dividends" (taxable) may include return of capital which is not taxable, but is supposed to lower your cost basis.
My trouble is, I don't know until mid-Feb how much return of capital was masquerading as dividends, and I don't see how to associate the return of capital on the 1099-Div form with which lot of the REIT owned by me.
How do you all account for return of capital, including adjusting your cost basis in Quicken?
In mid-Feb., simply retroactively correct the nature of the earlier distributions, I.e. change the part of the dividend that was ROC, TO ROC. It's just that easy! I do this every year. It's impossible to do it earlier as the company doesn't known until year end is done, how much is ROC.
Good one! Thanks.
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