tag:infinitekind.tenderapp.com,2009-01-14:/discussions/investments/6166-a-question-regarding-dividend-reinvestment-and-taxcost-basisInfinite Kind: Discussion 2021-12-10T18:00:20Ztag:infinitekind.tenderapp.com,2009-01-14:Comment/493815092021-09-10T04:14:25Z2021-09-10T04:14:25ZA question regarding dividend reinvestment and tax/cost basis<div><p>I'm a fellow user.</p>
<p>Under the scenario you have provided you have an income event of 1000 because of the dividend. There is no capital event at all. You would have a capital gain event if you had sold the shares for more than they are worth or an unrealised capital gain if the shares were now worth more now that what they cost, in the example you give the current value is the same as the cost basis.</p></div>dwgtag:infinitekind.tenderapp.com,2009-01-14:Comment/493815092021-09-10T04:44:41Z2021-09-10T04:44:45ZA question regarding dividend reinvestment and tax/cost basis<div><p>Thanks, dwg!</p>
<p>But I think dividend income is still investment return (e.g. Net Investment Income Tax includes dividends), so maybe I should say:</p>
<p>I want to get an view to show my total investment return (realized + unrealized).</p></div>jerryxetag:infinitekind.tenderapp.com,2009-01-14:Comment/493815092021-09-10T04:49:47Z2021-09-10T04:52:58ZA question regarding dividend reinvestment and tax/cost basis<div><p>FYI, I found that in DivReinvest, I got to choose Category, and the dividend is recorded under the Category I choose (E.g. in screenshot 1, it's "1-Food"), but this does not associate with each investment/stock, so there is no way to tell how much dividend income does each stock earn.</p>
<p>The reason I care about it so much, is that I have a few different income/muni/bond funds that issues a lot of dividends, which is then automatically reinvested, so I don't pocket cash into my account. However I do want to know over the time what's total return rate (Looking at the price different is useless, since most of the values it generates are distributed through dividends, so the price does not change much).</p></div>jerryxetag:infinitekind.tenderapp.com,2009-01-14:Comment/493815092021-09-10T05:30:33Z2021-09-10T05:30:33ZA question regarding dividend reinvestment and tax/cost basis<div><p>What version of MD are you on?</p>
<p>I just copied your tests and get different results.</p>
<p>But I can say that the Investment Performance report DOES report the $1000 dividend income, and also that recording the dividend against categories DOES also work. It also associates it with the stock...</p>
<p>The capital gains report for unrealised gains does not work properly. I worked with the developer a while ago and we got the portfolio screen and other reports working. Interestingly I get different results to you.</p>
<p>I can also say that buy/sell zero and values of zero screw up things in MD - especially the LOT matching window....</p>
<p>?</p>
<p>(not support, just a fellow user)</p></div>Stuart Beesley (Mr Toolbox)tag:infinitekind.tenderapp.com,2009-01-14:Comment/493815092021-09-10T05:32:03Z2021-09-10T05:32:03ZA question regarding dividend reinvestment and tax/cost basis<div><p>PS - I've simply given up with relying on MD for the tax gains report... There are too many issues and problems and I parallel track my stocks, buys, sells, gains, with UK tax rules, in a SS too... Yup - and every year I reconcile the data.... 😞</p></div>Stuart Beesley (Mr Toolbox)tag:infinitekind.tenderapp.com,2009-01-14:Comment/493815092021-09-10T05:37:55Z2021-09-10T05:37:55ZA question regarding dividend reinvestment and tax/cost basis<div><p>Categories record income and expense amounts. It is unusual, although possible, to create categories to measure down to the individual investment. Categories reports are normally used at the level of categories and subcategories.</p>
<p>For Investment performance it would be normal to look at the Investment Performance and Portfolio reports.</p></div>dwgtag:infinitekind.tenderapp.com,2009-01-14:Comment/493815092021-09-10T05:44:14Z2021-09-10T05:44:18ZA question regarding dividend reinvestment and tax/cost basis<div><p>Hi Stuart, I am on 2021.1 (3069), should be the latest non-beta version?</p></div>jerryxetag:infinitekind.tenderapp.com,2009-01-14:Comment/493815092021-09-10T05:47:40Z2021-09-10T05:47:40ZA question regarding dividend reinvestment and tax/cost basis<div><p>PPPS. For real capital gain events, I create a fake MD txn (Xfr) from a fake junk tax category (that I always ignore) to a category called capital-gains. I can then use income expense reports to see CGs and never worry about losing them.</p></div>Stuart Beesley (Mr Toolbox)tag:infinitekind.tenderapp.com,2009-01-14:Comment/493815092021-09-10T05:59:17Z2021-09-10T05:59:19ZA question regarding dividend reinvestment and tax/cost basis<div><p>I hope someone can fix the lot matching windows issue, so that I can happily use the DivReinvest with $0 amount to get dividend classified as capital gain in reports.</p></div>jerryxetag:infinitekind.tenderapp.com,2009-01-14:Comment/493815092021-09-10T07:46:50Z2021-09-10T07:46:50ZA question regarding dividend reinvestment and tax/cost basis<div><p>Quick question. Do you need to log match, or could you use avg cost basis?</p></div>Stuart Beesley (Mr Toolbox)tag:infinitekind.tenderapp.com,2009-01-14:Comment/493815092021-09-10T07:51:47Z2021-09-10T07:51:48ZA question regarding dividend reinvestment and tax/cost basis<div><p>I used lot matching to keep track tax basis, since in my brokerage, I choose highest cost first method to allocate tax lots.</p>
<p>Also I noticed that when using avg cost, the capital gain report may generate wring numbers. I didn’t check the exact reason, but I will try out tomorrow to see what caused it.</p></div>jerryxetag:infinitekind.tenderapp.com,2009-01-14:Comment/493815092021-09-10T08:13:01Z2021-09-10T08:13:01ZA question regarding dividend reinvestment and tax/cost basis<div><p>Could you create a NEW dataset with just ABC and the buy and DivReinvest example you showed above that generated the CG unrealised gains report and post that here as a file/export backup file? I want to see why my CG report differs from yours....</p>
<p>For me DivReinvest's work well, my problem is Equalisation payments (ROC), but just about get away with doing Sell Zero shares for this. But Accumulation funds are always an issue for me...</p></div>Stuart Beesley (Mr Toolbox)tag:infinitekind.tenderapp.com,2009-01-14:Comment/493815092021-09-10T17:18:15Z2021-09-10T17:18:20ZA question regarding dividend reinvestment and tax/cost basis<div><p>Hi Stuart,</p>
<p>I created a new dataset, and only created an investment account with a fake stock ABC, and did the same thing. See screenshot.</p></div>jerryxetag:infinitekind.tenderapp.com,2009-01-14:Comment/493815092021-09-10T17:36:58Z2021-09-10T17:36:58ZA question regarding dividend reinvestment and tax/cost basis<div><p>Interesting! If you edit your security and change it to Avg Cost control, then the Capital Gains report goes bonkers... Take a look......</p>
<p>Did you try the Investment Performance Report?</p></div>Stuart Beesley (Mr Toolbox)tag:infinitekind.tenderapp.com,2009-01-14:Comment/493815092021-09-10T17:50:04Z2021-09-10T17:50:49ZA question regarding dividend reinvestment and tax/cost basis<div><p>I set to lot matching (though there is no sales yet), for the above screenshot. And in this setting, I checked investment performance report (screenshot 1), it does tell me a $1,000 return, which is good. Though it didn't tell me the cost (it says Buys is $11,000, Gains is $0, Return is $1,000, Income is $1,000), so a little bit confusing reading the report, but guess I can live with it.</p>
<p>If I change to avg cost, Capital Gain report is complete wrong (screenshot 2), no change to Investment performance report.</p>
<p>Since I prefer to use MD to mimic my tax cost basis, I will continue to use lot matching.</p></div>jerryxetag:infinitekind.tenderapp.com,2009-01-14:Comment/493815092021-09-10T17:58:42Z2021-09-10T17:58:42ZA question regarding dividend reinvestment and tax/cost basis<div><p>Yup. The CG report for unrealised gains is utterly broken with different wrong results when either lot control or avg control is selected. I hope @sean is watching this thread.</p></div>Stuart Beesley (Mr Toolbox)