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Return of Capital (T3)

zzricezzzzricezz
edited November 2021 in Portfolio Slicer for Power BI
Through out the year I have been recording the drip using BuyTA and now I have gotten a T3 where it indicate some of the distribution paid have Return of Capital. Is there a proper way to record this now to properly lower the ACB?

I'm thinking of creating a new entry with Return of Capital, Qty = 1 and the amount is the ROC received?

Comments

  • VidasMatelisVidasMatelis
    During the year I record amount of dividends received and then at the last day of the year I usually do adjustments for Return of Capital or Notional Distribution.
    Lets say your return of capital for year is 220.08$.
    I enter 2 transactions:
    First transaction for negative dividend amount -220.08 with transaction type DivTA.
    Second transaction for transaction type ReturnOfCapital with amount 220.08.



    After this your total dividend amount will be as originally entered during the year, but that adjustment transaction will adjust ACB.
  • zzricezzzzricezz
    Thanks Vidas,

    Is there a reason for the DivTA entry? I original didn't have it and after adding it and refreshing the queries, the Sales tab didn't change so it didn't affect the ACB.
  • VidasMatelisVidasMatelis
    I am assuming that you were entering information about dividends received during the year. So lets say that over 2020 in you received 4 dividend payments (quarterly) of 1000$ each - total of 4000$ in dividends. In 2021 March you get your T3 telling you that out of these 4000$ dividends you received 220.08 was ReturnOfCapital. Please compare your T3 with actual bank statements and you should see that your total amount of dividends deposited into your account already include ReturnOfCapital.
    So first DivTA simply deducts that amount received so that the second transaction can classify that amount as ReturnOfCapital.
    With these 2 transactions, total amounts of dividends stay the same, just part of these dividends are now classified as ReturnofCapital.
    I am assuming here that you track all dividends received, not just ReturnOfCapital.
    Try to do a full refresh and see Holdings tab cost of basis amounts.

    Note - it appears you do a DRIP on your holdings in an open account and I just want to point out that you should not fully trust PS for proper cost basis calculation as with multiple DRIP transactions it is not easy to calculate proper cost basis!
  • zzricezzzzricezz
    edited November 2021
    Since the shares have been sold, it doesn't show up in the Holdings tab anymore. I removed the filter of Qty > 0 but it no longer have the Cost Basis information kept on that tab.

    Does it make any difference if i'm using the Auto Dividend script?
  • VidasMatelisVidasMatelis
    In the holdings tab there is Year and Month slicer - set it up to a month before the sale and you will see holdings for the end of that month.
    Autodividends include all dividends, so my proposal for recording ReturnOfCapital still is correct.
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