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How to record "foreign Tax Paid" for mutual funds?

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tahartman

Dec 22, 2021 @ 09:13 PM

I have a couple of mutual funds accounts which report "Foreign Tax Paid". In the past, I've designated these items as "SellXfr" or "DivXfr" so that my number of shares does not change, but when I do, MD sets the price of the fund to $100 and that cannot be overridden. This, in turn, messes up the Security History and Net Worth graph. As I understand it, this is just an informational item against which I can take a tax credit. It does not change my share holdings. Does anyone have an idea about how best to record these items?

1. 1 Posted by dwg on Dec 22, 2021 @ 09:38 PM

   

   I'm a fellow user.

   My approach to recording what I term not for value transactions i.e. they do not affect my investment but are used for taxation and the like is to record them in such a way that does not impact the investment.

   I do this by having a category for the "expense" or "income" item that I use in reporting and I have another category called Tax reporting which I do not use in any reports.

   My transaction is thus entered as a DivXfr with the category and transfer fields being these two categories thus it shows in my reports under the right account/security but does not effect the investment at all. Dividends in Moneydance is really a indication of any income event, not just a Dividend. a price in the Dividend transaction is just a place holder in my opinion it should not be shown even if the data format requires something, but it should not place anything in the price history, in other words it should be ignored for all purposes.

   This is also how I enter data from the tax report the funds produce so that I can get a consolidate tax report (Income and Expense) from Moneydance, that covers mot things.

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2. System closed this discussion on Mar 23, 2022 @ 09:40 PM.