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Why does MD add taxes on dividends to security cost basis

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Ali

25 Aug, 2023 02:24 PM

Hi,

When trying to run a portfolio performance report to determine the total cost basis of my portfolio, I noticed that the cost basis of a security is not reported the same way in different reports.

1. In the "Cost basis" report, the cost basis is the cost of shares + associated commissions at time of purchase.
2. In the "Investment Performance" report, the "buys" total the same as (1).
3. In the "Portfolio" report, the cost basis is (1) + any expenses incurred, including any taxes deducted on dividend income.

The last report is causing issues for me because when I receive any income on those securities, taxes are deducted at withholding which I record as expenses in the appropriate tax category in the same account. MD is adding those taxes to the cost basis and skewing the performance report instead of deducting them from income.

Help needed: I need a simple portfolio report where it shows the cost of purchase as per (1) to declare in my tax returns. Where do I get that?

• 1_Cost_Basis_Report.png 29.9 KB
• 2_Investment_Performance_Report.png 10.6 KB
• 3_Portfolio_Report.png 11.1 KB
• 4_Investment_Transactions_Report.png 70.2 KB

1. 1 Posted by Ali on 25 Aug, 2023 02:38 PM

   

   Just to add, if I record the Dividend income + tax expense as a single transaction i.e. taxes deducted as fees from the dividend, it is added to the cost basis of that security.

   BUT, if I enter them as 2 separate transactions, i.e. record the tax expensed as MiscExp into the same category, it does not get added to the cost-basis.

   Why does MD do that? Is it a bug?

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2. System closed this discussion on 24 Nov, 2023 02:40 PM.