Return of Capital - ROC
For a taxable account not an IRA: How do you handle Return of Capital (ROC)? Example EPD issues a quarterly distribution that is classified as Return of Capital. This ROC distribution lowers the cost basis of the stock rather than being considered as income. It is therefore not taxable. Cost basis is reduced each time there is an ROC distribution until the cost basis reaches $0. After that the distribution is taxed as Long Term Capital Gain. Portseido needs a ROC transaction type to handle this.
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