Return of capital - should not be uncategorised income (PP 2016)

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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.
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st

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Posted 4 years ago

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Diver Dave

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Steven, you're right that a Return of Capital is not considered Income - as you say it's a reduction in the Cost Base which will increase the Capital Gain when you come to dispose the shares.

If you want to omit it from your Report, go to Customize and uncheck RtrnCap and RtrnCapX from the Actions to be included.  There may be other non-assesable items you wish to omit as well.
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st

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Thanks Dave, will try that.