Return of Capital

Feb 17, 2010 2 Replies
K

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?


Vote
Twitter Facebook LinkedIn
S

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.

Vote
Twitter Facebook LinkedIn

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required