Message: 10 Date: Mon, 20 Sep 2021 08:55:41 -0700 From: Fred Tydeman <tydeman.f...@gmail.com> To: Jean-David Beyer <jeandav...@verizon.net> Cc: gnucash-user@gnucash.org Subject: Re: [GNC] Capital gain with Return of Capital Message-ID: <cak1r+o0ni0rmxhszebxqsyssnabzbgorg1wl8+4m2kolbec...@mail.gmail.com> Content-Type: text/plain; charset="utf-8"
On Mon, Sep 20, 2021 at 8:26 AM Jean-David Beyer via gnucash-user < gnucash-user@gnucash.org> wrote: > > was return of capital. I have not yet learned how to enter a return of > > capital in GnuCash.... > > Do you not just subtract the capital returned from the cost basis? > Correct. Linux Gnucash Help Tutorial Investments Return of Capital This refers to a transaction where an investment returns capital to the investor and doesn't have any accounting implications other than reducing the cost basis. The number of shares held is not changed. A Return of Capital transaction can be entered in the stock register by entering the stock split with Shares 0 Price 0 Sell Return of Capital value The other side of the double entry would usually be a debit to the brokerage bank account. Attached is a screen shot of the account with the buy, rtn of cap, sell. The capital gain shown is what Quicken calculated (not Gnucash). -------------- next part -------------- A non-text attachment was scrubbed... Name: Screenshot from 2021-09-20 08-52-30.png Type: image/png Size: 83067 bytes Desc: not available URL: <http://lists.gnucash.org/pipermail/gnucash-user/attachments/20210920/56e78e fd/attachment.png> Hi Fred, This is a known problem. Please see https://bugs.gnucash.org/show_bug.cgi?id=797166 Stock scrubbing does not handle Return of Capital Transactions I suggest instead of doing a Return of Capital, do 2 dummy transactions: 1. sell all the stock at the cost that was paid so there is no capital gain from this transaction 2. Buy the same qty at the new reduced cost (ie less capital returned) Then when you subsequently sell, scrubbing should work. Guide 9.7.2.8. Considerations: Says 5. The automatic capital gains calculations can handle straightforward buy, sell, and return of capital transactions but any transaction that affect the number of shares, even simple splits, will cause it to produce wrong answers so those cases must be handled manually. But I think this means: return of capital transactions (with a reduction in stock qty) are handled. Regards, Chris Good _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.