If they take $10 for these shares then I would say your cost of share is $10, not $8. The cost of share is what you pay for it, no matter what absurd way the cost is calculated, so the money is not vanishing per se. In this case you paid $10. You could then remove it from the price database since you don't want it to be used for valuation purposes. GC assumes the price paid is good for valuation but that assumption is not always correct evidently.
That said the whole thing about rounding shares is just plain weird. What would happen if you had $15 after tax to reinvest? 15/8 = 1.875. Do they round it up to 2 shares then, at which point you get a discount? Also what about just keeping the money, then separately buying new shares (so strictly speaking not "reinvesting"). Are you allowed to buy new shares at $8? On Wed, Jun 7, 2023 at 8:02 AM xboxboy.mageia+GnuCash < xboxboy.mageia+gnuc...@gmail.com> wrote: > Hi guys, > > My issue is this: I'll provide an example: Note, I'm in Australia, so we > have franked (taxed) dividends that we claim a tax break on. > > Total dividend $12; made up of > > Franked dividend $10 > > Imput credit (tax credit) $2 > > (So in this example $2 is paid to the tax office by the company, and I > receive only $10) > > But I reinvest this dividend: Say the shares are $8. > > That means with my $10, I can get 1.25 shares, but it gets rounded > down/up to the nearest share. > > So I get one share for a cost of $8. > > So normally I'd enter it like this: > > Expense: tax credit $2 > > Dividend (franked): Dividend reinvestment account $10 > > Buy: stock purchase: 1 unit $8, total buy $8 > > Total dividend income $12 > > Cost of share(s) $8 (normally from that dividend reinvestment account) > > (but now I'm $2 unbalanced) > > How do I account for the $2 that has now 'vanished'. With my other > companies, this amount gets put into an account, and I get to apply it > to the next dividend. But with this company, they don't do that, the > amount is simply 'gone'. > > Hope that makes sense, any ideas most appreciated, > > > _______________________________________________ > gnucash-user mailing list > gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > ----- > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. > _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
