It seems like you understood precisely. My only qualification is that The
answer to #2 is not necessarily. My statements show two. I enter them as
one. But I don't download data wanting to do otherwise. As noted, either
gets you to the same result.

"just me" <anonymous[at]discussions.microsoft.com> wrote in message
news:012f01c492c3$12865cd0$a401280a[at]phx.gbl...
- quote -

Oh, so are you saying that:
1. When you use the 'Reinvest Dividend' action you only
enter ONE transaction (i.e. that single transaction
combines both the distribution and the reinvestment)?
2. But when the distribution and the reinvestment are
listed as two separate transactions the first transaction
must be a 'distribution' and the second transaction must
be a 'buy'?

I was assuming two transactions (because that is always
the way it downloads for me): The first a 'distribution',
but the second I wasn't sure what. I was asking if I
should make the SECOND transaction a 'reinvest dividends'
or a 'buy'. From what I think you are saying that would
have to be a buy.

Thanks for the answer. Please let me know if I
misunderstood you.
- quote -

jm,

To answer your last question first:

None.

Now for the rest:

Basically, if you instruct the fund to reinvest any or all of its
distributions it will do so and record those transactions accordingly.
Fund distributions can take several forms though typically these are
dividends, short term capital gains, and long term capital gains. In
these situations, you should probably categorize them in Money as
"reinvestments" since you don't actually receive the proceeds of the
distribution.

This of course is different if the reinvestment you mention is
something that you do instead of the result of prior instructions to
the fund. If you had not instructed the fund to reinvest a particular
distribution but subsequently reinvest it nontheless, you should
probably account for it in Money as two transactions: the distribution
and the purchase.

As it appears from your post that you may also have questions about
determining the type of distribution, you should definitely contact
the fund or your broker if you're not sure. By way of example, my
401(k) administrator, for better or worse, categorizes all
distributions on their website as "dividends". As this is not always
true, I always go the fund's website in order to determine the true
nature of the distribution. While many times capital gains
distributions only occur towards the end of the year, its best to
check.

Finally, since I had indicated that it makes no difference to Money
how you categorize distributions, please remember that it may make a
difference to the IRS. Please consult a qualified financial adviser
(not this forum) if your questions may be tax related.

Hope this helps!

Regards,
JB


"just me" <anonymous[at]discussions.microsoft.com> wrote in message news:<050701c49261$c5b5b740$a401280a[at]phx.gbl> ...
- quote -

For the pairs of (Dividend/Buy, Reinvest Dividend), (Long Term Capital
Gain/Buy, Reinvest Long Term Capital Gain), the only difference is probably
that the Reinvest can be done in one transaction versus two for the
income/Reinvest. There is a difference between how (Long Term Capital
Gain/Reinvest Long Term Capital Gain) and (Dividend/Reinvest Dividend) are
reported for tax purposes. What your fund did is what you should do.

"just me" <anonymous[at]discussions.microsoft.com> wrote in message
news:050701c49261$c5b5b740$a401280a[at]phx.gbl...
- quote -

When a mutual fund makes a distribution, which is then
reinvested, what 'activity' should be used to record the
new share purchase? Should it be 'buy' or 'reinvest
dividend'? Or what about 'reinvest long term capital
gain'?

As far as Money is concerned, what is the difference
between those things?

Thanks.