Quicken 2013 Return of Capital Calculation and Distribution Across Multiple Lots

 Quicken 2013 resolved a defect that was present in prior versions of Quicken that resulted in incorrect distribution of Return of Capital actions across multiple lots of a Security. This defect resolution was made to comply with IRS requirements for the reporting of Long-Term and Short-Term Capital Gains respective to Return of Capital. For more information on this requirement, see http://www.irs.gov/publications/p17/ch08.html on the IRS website. 

IRS Example:
  • You bought stock in 1999 for $100.
  • In 2002, you received a nondividend distribution of $80. You did not include this amount in your income, but you reduced the basis of your stock to $20.
  • You received a nondividend distribution of $30 in 2012. The first $20 of this amount reduced your basis to zero. You report the other $10 as a long-term capital gain for 2012.
  • You must report as a long-term capital gain any nondividend distribution you receive on this stock in later years. 
The appropriate distribution of the ROC action in Quicken will rely on several factors:
  • Purchase (BUY) date
  • Purchase price
  • Interim distributions
  • Subsequent Buy and Sell actions for the Security

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