Return of capital - should not be uncategorised income (PP 2016)
st_6872571
Member Posts: 79 ✭
During the year I had a return of capital (not in full) of shares in a company I've held for many years. The return of capital did not reduce the number of shares held, they remained the same.
Within the stock entering screen, I used the code "Return of Capital" and associated it to the relevant stock.
Because it's tax time, I've printed an Investment Income report and the return of capital is listed as Uncategorised Income, along with dividends and realised gains. Unless I'm missing something here (I'm not an accountant), a return of capital in this sense is not income, it should be reducing the cost basis of the relevant shares.
Any suggestions on how this should be handled within Reckon?
Steven.
Within the stock entering screen, I used the code "Return of Capital" and associated it to the relevant stock.
Because it's tax time, I've printed an Investment Income report and the return of capital is listed as Uncategorised Income, along with dividends and realised gains. Unless I'm missing something here (I'm not an accountant), a return of capital in this sense is not income, it should be reducing the cost basis of the relevant shares.
Any suggestions on how this should be handled within Reckon?
Steven.
0
Comments
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Thanks Dave, will try that.0
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