locked
Income/Expence Report RRS feed

  • Question

  • I use 'Pocket Sense' to download all brokerage activities. All dividend reinvestments show in the report as dividend income, but are not being offset as expense like for the likewise amount to buy the new investment.
    Friday, January 13, 2012 3:07 PM

All replies

  • From an income tax effect, the dividend is income. It is not offset by your basis. When you sell, the basis matters in the calculation of capital gains.

    From an investment analysis point of view, your basis does matter in determining your return on investment. For that, you want to use the Portfolio. See http://social.microsoft.com/Forums/en-US/money/thread/60e14c6f-8a34-4f48-a286-69f9d6a62dfb for a list of columns that should work for you. In particular, the various TR (total return) columns are useful in analyzing investment performance.

    Friday, January 13, 2012 3:43 PM
    Moderator
  • Not all brokerages report "properly".  Schwab reports reinvested dividends as a divident into your cash account and then also shows a BUY from the cash acct to the investment - as it should be, but others just report the dividend and then ADD SHARES to bring the investment up to date, even though they really are BUYs.

    So you should do the BUY manually when you get dividends, or consider the easier alternative of changing the DIVIDEND to REINVESTED DIVIDEND.

    Friday, January 13, 2012 5:14 PM
  • Do you have that many transactions that you can't make the corrections by hand?  I just change Dividends to Reinvest Dividends and manually put in the number of shares involved.  No big deal.
    Friday, January 13, 2012 5:17 PM
  • I deleted the dividend and buy transactions and reentered those transactions as Reinvested Dividends. Then when I looked at my Income/Spend Report only the income of the dividentd is listed.

    My brokerage is TD Ameritrade and they report correctly as 2 transactions, 1st as dividend and 2nd as buy for the same amount. All this shows up correctly in the Portfolio Mgr., but it still puzzels me why the 'buy' is not listed in the Spend or Expense account .

    Thanks to all of you who took part in this discussion.

    Friday, January 13, 2012 8:56 PM
  • All this shows up correctly in the Portfolio Mgr., but it still puzzels me why the 'buy' is not listed in the Spend or Expense account .

    That's just the way it is considered. If you put $100 into the bank, that is not considered an expense. When you pull that $100 out of the bank, it is not considered income. I underestand the bank account is not quite the same. I am just trying to think about why it is the way it is. I think if there were some kind of cash flow report, that might do more of what you want. I was thinking there was one, but apparently there is not.

    Double-entry accounting would view this a little differently. Money uses a single-entry accounting method.

    How is your TD Ameritrade account working regarding putting the right date on the stock quote history? That may or may not be significant to you. It does not affect the dates on transactions. The PocketSense timeOffset value deals with this. For Fidelity,  "scrubber" for myself that reduces the window of time where there is a problem getting the right date associated with the quotes.

    Incidently, I expect to make my annual post on how to create the TXF file that fills out your schedule D for TurboTax and probably some other income tax programs.



    Friday, January 13, 2012 9:26 PM
    Moderator