Thanks for this information. I was trying to reconcile an investment
performance report to the transactions this morning and I couldn't determine
the difference. The investment was a Canadian Trust with taxes withheld on
dividends. So I assume this is my "difference".


"Cal Learner-- MVP" wrote:

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Thanks a lot.

"Cal Learner-- MVP" wrote:

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In microsoft.public.money, Pablot wrote:

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Yes, if it is in a tax-deferred account, the withheld tax is lost
money. In a taxable account, it may be fully refundable for small
enough amounts. In that case, it could be properly ignored when
figuring performance. You *could* enter the transaction as an
OtherExpense for the particular stock manually, and then Delete or
Void the downloaded withholding amount.

It is also possible to have WithheldTax:StockA and
WithheldTax:StockZ as categories, using the dual category hierarchy.
This, as would the method in the last sentence of the preceding
paragraph, be a lot of work for the amount of benefit.

Thanks, your answer is clear, but the problem is in your own words "...and
1,5 cash expense that you will assign to a category for the withheld tax". In
this category I will have ALL the withheld taxes of different stocks. So when
I want to know the real performance of a stock the withheld tax do not be
considered.

"Cal Learner-- MVP" wrote:

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In microsoft.public.money, Pablot wrote:

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You get $10 in dividends from a foreign stock. $1.50 is withheld, so
you get a net $8.50 in cash.

You enter, or download, a $10 Dividend, and a $1.50 cash expense,
that you will assign to a category for the withheld tax.

The performance reports show $10.

When you get your US 1099, there is a corresponding $10 dividend
listed there, and a $1.50 of foreign tax. You include the $10
amount in your gross income. The $1.50 may be credited 100% to you
along with wage withholding etc. Alternatively goes on form 1116 if
your foreign tax dividend withholding reaches a $300 or $600 total
threshhold, from which at least part makes it back as a credit.

So the method used in Money matches the US tax treatment. Now if
this is a tax-deferred account, the foreign tax is lost to you.
Entering a $8.50 dividend would make sense in analysis, but the
reality is that you are probably going to download a $10 dividend
from your broker, even in a tax-deferred account and the separate
expense. This download treatment may vary with the broker; there may
be some where you only download the $8.50, but that is not the
common way in my opinion.



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What I want to mean is that if you go to the report "Performance by
investment account", and if you look into the fields "realized gain/loss",
and "return for the period", the withheld tax DOES NOT APPEAR there. For me,
if you want to know the real performance of a stock you have to consider the
dividend (this is well done by Money Plus) AND the tax withheld (this field
is not linked with the dividend transaction).

"Cal Learner-- MVP" wrote:

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In microsoft.public.money, Pablot wrote:

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It is a function of your broker.

It is not clear what you mean that the cash transaction "is not
associated with the dividend transaction." That would almost imply
that there was a dividend properly downloaded, and a separate cash
transaction, possibly "withheld tax" on a foreign stock. In that
case, a cash transaction may be the correct handling anyway.

I download transactions from my broker into my Money Plus, in case of
dividends appears a cash transaction of the tax payment, but this transaction
is not associated with the dividend transaction. Is there any chance to
download this cash transaction as an investment transaction?