Partnership Distributions/Linked Accounts
Brand new to MoneyDance, running parallel with Quicken to gain confidence. No sure I'm there yet with investments.
1) Don't see option to record partnership distributions in Investment Account and immediate transfer to linked Cash Account. How do we do this?
2) Don't understand the relationship between Investment Account and linked Cash Account. Cash appears in both accounts, even though transferred from one to the other. Investment transactions also appear in both accounts. Is one account the location to enter original transactions and balance goes to the other?
Thanks for any help.
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1 Posted by Tom Freeman on 19 Jul, 2016 03:13 PM
Sorry for the late reply. Can you give me more specifics on the partnership distributions. How is the partnership set up? An asset account may be more suitable.
By linked cash account are you talking about the brokerage Money Market account. The cash balance is generally the Money Market balance. Many users create a MM security to record interest. Did you migrate from another personal fiance software and the cash account imported?
Every personal finance setup is unique, if you can give me the details of how your brokerage and cash are set up I can better advise.
Tom Freeman
Infinite Kind Support
2 Posted by brainard.patton on 20 Jul, 2016 03:50 PM
In my case, these are gas pipelines throughout the US in the form of Master Limited Partnerships (MLPs) that are traded similar to corporations. The MLPs routinely pay cash distributions which go into my investment account with Morgan Stanley. Although similar to dividends on shares, these payments are non-taxable and need to be specially flagged for US tax purposes. Following the end of the year, each MLP will issue a Form K-1 advising as to the actual taxable income or loss related to my investment which is reportable on my US income tax return for that year.
After twenty years with Quicken, I’m considering MoneyDance as an alternative and running 2016 in parallel. I migrated all my 2016 transactions from Quicken, including those in my Morgan Stanley Accounts. In Quicken, these appear 1) in an investment account, where all the details of investment transactions (purchases, sales, dividends, stock splits, etc.) are reflected, and 2) in a linked cash account where I can write checks, transfer funds, etc. All cash amounts from the investment account go to the linked cash account. In Quicken, the investment account shows zero cash balances. MoneyDance has the two accounts, but the interaction between them isn’t working properly.
Thoughts?
3 Posted by dwg on 20 Jul, 2016 10:19 PM
As far as recording the distributions I have a number of investments where the amount of the distribution is not what you report for taxation purposes so my approach is to still use the Div and DivXfr action types but I have set up a specific non-income tax related category for recording purposes, in my case Investments:Unit distributions and I assign this category to the payments received.
4 Posted by Tom Freeman on 22 Jul, 2016 05:47 PM
For the MLPs DWG's advice is sound.
As for the second part, there is a bank register for each investment account where you can write checks and such. These transactions will decrease the cash balance of the investemtn account. Cash transfers in and out will show on both registers and the cash balance will show on both registers.
Tom Freeman
Infinite Kind Support
5 Posted by brainard.patton on 23 Jul, 2016 08:49 PM
Thanks, Tom
I fear that Moneydance isn’t for me. Besides the partnership issue, I was hoping for a user-friendly alternative to Quicken, especially with respect to monthly budgets and projections. After a number of hours of trying the MD budget process, I am as frustrated as I was with Quicken.
Many thanks for your help. Continuing my search.
Skip Patton
6 Posted by dwg on 23 Jul, 2016 10:17 PM
Pretty much with any software as you get into using more involved functionality the more complex it becomes - no matter how "easy: the vendor claims it to be.
All I can really suggest is to look at one piece of functionality at a time. With budget you can read the appropriate chapter of the user manual as well as the specific knowledge base articles at:
http://help.infinitekind.com/kb/budgeting
For forecasting future account balances many users have found favour with the Money Foresight Extension.
http://www.moneyforesight.com/
7 Posted by Tom Freeman on 30 Aug, 2016 10:46 PM
Tom Freeman
Infinite Kind Support
Tom Freeman closed this discussion on 30 Aug, 2016 10:46 PM.