Adjusting ADJUSTED COST BASE

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Jaunty
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Re: Adjusting ADJUSTED COST BASE

Post by Jaunty »

David R wrote: (although it makes for tedious bookkeeping)!
I agree, and with the weather to be wet and cool tomorrow and the having the house to myself so I can spread paper out and mutter away, it'll be tomorrow's job!
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caricole
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Re: Adjusting ADJUSTED COST BASE

Post by caricole »

Jaunty wrote:
David R wrote: (although it makes for tedious bookkeeping)!
I agree, and with the weather to be wet and cool tomorrow and the having the house to myself so I can spread paper out and mutter away, it'll be tomorrow's job!
Your lucky

I do not expect T3's of IShares before the beginning of April as every year :(

Then only its bookeeping followed by incometaxes

If I am thrue by Apr 15...I feel satisfied
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DavidR
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Re: Adjusting ADJUSTED COST BASE

Post by DavidR »

And you're lucky too :wink:
- I have to prepare a tax return for a client's Family Trust that owns some iShares.
The Family Trust's tax return is due March 30 !
queerasmoi
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Re: Adjusting ADJUSTED COST BASE

Post by queerasmoi »

adrian2 wrote: So the investors who have sold the fund partway through the year will not have the info to calculate the distribution breakdown and their gain or loss until past end of year anyways, so why declare ROC and reinvested distributions for the same year?
I presume it's just some quirk of accounting that they prefer to do it that way.

Example: In a quarter where there are net inflows to the fund, at various times between dividends there are arbitrageurs who exchange creation units for blocks of shares of XCS. The creation units contain shares and a certain amount of cash to match the dividend cash that the fund hasn't distributed yet. So when investors actually receive a dividend from XCS, some fraction of it consists of cash that came into the fund by exchange of creation units rather than via dividends. iShares would prefer to account for that cash as ROC in the quarter when they distributed it, rather than averaging it out to avoid a reinvested amount.
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adrian2
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Re: Adjusting ADJUSTED COST BASE

Post by adrian2 »

queerasmoi wrote:iShares would prefer to account for that cash as ROC in the quarter when they distributed it, rather than averaging it out to avoid a reinvested amount.
But, if this is true, why not publish the quarterly breakdown as it happens?
Or, if they publish everything at year end, why not net out positive cost base adjustments with negative ones?
Are all the events necessitating the "reinvested" portion occurring at year end?

Even for the fourth quarter, they have positive ROC and negative ROC at the same time.
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