Re: Capital Gain Distribution

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Posted by Mark on April 11, 2007 at 23:22:32:

In Reply to: Capital Gain Distribution posted by Sean Phillips on April 11, 2007 at 21:31:05:

: I have an iShares (Canada) ETF that returned a Capital Gain distribution. I don't really understand how this works, or why they do it, but it has effectively raised my cost basis.

: So I pay tax on it now, but should pay less tax later when I sell it...

: How do I record this in FM so that it correctly changes my cost basis??

Hi Sean,

This sounds like a reinvested distribution of type "capital gain". When you have a reinvested distribution, your cost basis goes up by the amount of the reinvestment. Did you actually receive this money in cash, or did you end up with more shares?

Thanks,
Mark
--
Fund Manager - Portfolio Management Software

Replies:

• Re: Capital Gain Distribution Sean Phillips 16:45:19 04/12/07 (2)
  • Re: Capital Gain Distribution Mark 16:56:49 04/12/07 (1)
    • Re: Capital Gain Distribution Sean Phillips 10:01:02 04/13/07 (0)