Incorrect transfer transaction for Reinvest - Income Reinvested

When you enter a brokerage account transaction for Reinvest - Income Reinvested, including the amount for dividend, the number of shares, and the commission, two transactions appear in the register, one categorized as ReinvDiv and one as MiscIncX. For the transaction categorized as MiscIncX, the description lists the transaction as Transferred and the commission amount.

This behavior is by product design so that Quicken can:

  1. Record the total dividend income received for income tax purposes. The total amount will be reported on Schedule B.
  2. Ensure that the cost basis of the amount of money that was reinvested in the security is correct. 

The commission should not be treated as cost basis for the reinvested dividend because the brokerage firm has charged this fee to administer the reinvestment for you. As such, the money is really an expense outside of the share purchase cost. To accurately track this information, Quicken divides the information into two transactions:

  1. The Reinvest tracks the share purchase.
  2. The MiscIncX with the category line item of _DivInc tracks the portion of the dividend received that was used to pay the fee.

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