I have question re: Investment Trust Return of Capital (ROC) Real Estate Investment Trusts (REIT)
Issue:
Investment trusts & REIT investments, which pay monthly distributions, and provide in Canada a T3 summary (USA form 1099). This reporting form for tax purposes indicates how much of the annual distributions included a Return of Capital and is reported as (CRA) box 42 - Amount resulting in cost base adjustment - This amount represents a return of capital from the trust.The the amount monthly that is a return of capital is not known or declared by trust till year end.
This results in reduction of the ACB. [ACB should change as 2 types of distributions will adjust your cost basis. A return of capital (ROC) lowers your basis, and an account fee paid increases your basis.]
Question:
How do I enter this ROC amount without adjusting 12 monthly distribution amounts?
There is a suggestion here for a negative ROC entry to offset, but I cant see that this would reduce the cost base properly. viewtopic.php?f=7&t=672&p=2380&hilit=return+of+capital+ROC#p2380
Ideally since the ROC amount is known at year end - to enter once in FM would be ideal.
Thanks
Terry