In microsoft.public.money, Dick Watson wrote:

- quote -

The way I *would* have done it before reading Dick's method is to
modify the $9 dividend transaction "Transfer to" box to point to a
"Cash or other" account named "Foreign Tax Paid". I would have to
make sure that you change that box back to normal on subsequent
transactions. But that way is not as good as the way Dick suggested.

Most brokers only provide the net dividend for download, and
tracking is more work than it is worth in that case. But for you it
will be fairly easy. So you are in luck.

I would make that category Taxes:Foreign Tax Withheld. Go to
Accounts&Bills-> Categories&Payees-> Categories and double-click the
category (or click New if the category is not yet created). At the
bottom select "Include on tax reports". For the tax form select
"1099". For the form line, select "Foreign tax withheld from
dividends". That will get the data onto tax reports. I did not test
to see if the tax estimator takes it into account.

And while thinking of categories, you might want to think about
clearing
Tools-> Options-> Categories-> UseASingleListForCategoriesAndSubcategories....
It is a matter of preference; I clear it.



- quote -

Personally, I'd go to the cash account and leave the +9 transfer alone but
enter a -9 Taxes:Withholding kind of expense.

"Hexdump" <gcash[at]houston.rr.com> wrote in message
news:c21201c3ed88$ec8db170$a001280a[at]phx.gbl...
- quote -

My broker automatically withholds taxes from foreign
dividends.
MS-Money handles the entry correctly in the Brokerage
account. Example. Company XYZ pays a divident of $50.00,
and my broker withholds a tax of $9.00. The MS-Money
brokerage account section, properly shows it as.
$50.00 + and
($9.00) -

However when these $$$ are posted to the cash side of the
account they both go in as +++.
At account recociliation time, I have to back out the
original +9.00 and reenter it as a negative.