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Foreign tax and investment performance

Comments, critical feedback, praise, or suggestions for new features.

Postby silvan » Fri Oct 25, 2019 6:17 am

Hi Mark,

Regarding the foreign tax. I always recorded them as negative distributions, because I want to be able to check the amount of tax related to the dividends I received for every stock.

But, I do not want them to lower my investment performance, as the tax authorities will refund them to me (in most cases). Also, I use the S&P 500 as a benchmark for my performance and this index is computed using a real return, that is both accounting for stock price changes and dividend payments (total return index). So, because of the foreign tax my performance is not completely comparable with the widely used S&P 500 benchmark.

It would be great if you could choose a distribution label for foreign tax that does not impact your investment performance. The current label you can use if you want your performance to be lowered with the foreign tax, for example for those taxes that your tax authorities will not refund to you.

Or do you have other suggestions regarding my topic?

Thanks.
silvan
 
Posts: 47
Joined: Sat Apr 11, 2015 2:40 am

Postby Mark » Fri Oct 25, 2019 7:46 am

Hi Silvan,

There is one distribution type that can optionally be excluded from yield calculations. This is the "Account Fee" distribution type. You could use this distribution type to track your taxes paid, and choose the option to not have Account Fees included in yield calculations. See "Options / General Preferences... / Yields / Include Account Fees in Yield Calculations".

By default, account fees are included in your tax basis. If you don't want that then turn off "Options / Report Preferences... / Capital Gains / Include Account Fees in Basis".

Lastly, if you prefer a different name than "Account Fee", you can rename your distribution types under "Options / Distribution Labels...". The above options will still apply to the distribution with the "Original Label" of "Account Fee".
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
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Location: Chandler, AZ

Postby silvan » Sat Oct 26, 2019 7:51 am

Hi Mark,

Thanks for your quick reply and explanation. I will look into it!

And I would like to say that I like the Professional Version very much. A lot of interesting features! :)
silvan
 
Posts: 47
Joined: Sat Apr 11, 2015 2:40 am


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