[moneydance] Tax Deferred dividends

[Edward Reid]

At 10:42 03/08/07 +1100, Teo de Hesselle wrote:
>it's possible to receive a dividend of say $100, a certain percentage of
>which (say 40%) is tax deferred - in this case you pay regular income tax on
>the non-deferred component ($60), but instead of paying tax on the remaining
>$40, you reduce the cost basis of those shares by $40.

My immediate thought is to make the share account a sub-account, and group 
with it a fictitious account "basis adjustment for tax". Also create a 
category "basis adjustments". When you do the tax deferral, transfer $40 
from "basis adjustment for tax" to "basis adjustments" (so that the basis 
adjustment is negative).

It won't actually adjust the basis in the share account, but the total of 
the share basis plus the basis adjustment will be the correct amount. 
Perhaps it would even be possible to arrange it so that the higher level 
account shows the correct basis, I'm not sure. In any case, at least you 
have the records.

Don't worry about the fictitious nature of the extra account and category. 
After all, the basis adjustment *is* fictitious -- the basis didn't really 
change, it's just a convenient way of recording the tax deferral.

>Also: The share updater thingy does not work (at least not on my mac) when a
>proxy is explicitly, set [...] noone responded last time I pointed this out.

Enter it on the MD trac -- AFAIK it accepts extension reports. That's a lot 
more likely to keep it visible than mentioning it here.

Edward
-- 
Art works by Melynda Reid: http://paleo.org