Use the Reinvest Long-term Capital Gain transaction type to record the long-term capital gain (gain on an investment owned for more than 12 months) reinvested in the same holding. Since this purchase is made out of the capital gain, there is no impact on your cash balance.
Note: Your broker may mention the payment as long-term capital gain and its investment in shares as two transactions in your account statement. You need to remember this when reconciling your account.
To add a reinvested long-term capital gain transaction
- In the sidebar, select the investment account you want to use.
- Click the Transactions tab and then click the New Transaction icon in the register toolbar.
- Select Reinvest > Long-term Capital Gain from the Transaction Types list.
- Add the information for:
- Date - Enter the date of purchase. This is important if you want to track complete investment performance and tax information.
- Security - Select the security for which you're purchasing shares.
- Distribution Amount - Enter the amount received for the shares of this security.
- Number of Shares - Enter the number of shares bought by reinvesting the gain.
- Commission - Enter the amount paid towards commission per share.
- Total Cost or Price per share - Enter the total cost of the shares on the date of transfer or the price paid per share on the date of transfer. Either can be used to calculate your investment amounts.
- Memo - Enter the note you want to associate with the transaction.
- Tags - Enter the tags that you want to use when searching for the transaction.
- To add an attachment, go to the Attachments tab, click the Add attachment button, and select the file you want to attach to the transaction.
- Click Save when you are done.