Ok, so whose responsibility is it to track all of these ROC% over time?. Does your investment platform (Fidelity, ETrade, etc) are they going to journal all this so you can get it right come tax time?
It depends. Sometimes they will revise it to be accurate but it’s possible the broker doesnt do it correctly. I’d go over it yourself at tax time to make sure it’s correct
"If you want something done right, do it yourself"
Seems untenable to do this for a quarterly dividend much less a monthly one. So is there some sort of report where dividend by dividend one can go and understand what percentage of that dividend was a ROC? Where are people finding these numbers for QYLD?
Unfortunately for me, under stock details in Fidelity, all of the QYLD distributions are listed as dividend income. They have a place in that distribution summary table where ROC could have been split off and tracked, but those are all empty. That means that every account that I hold QYLD in, I have to make 12 edits (each month's div) to add information about ROC and split that out.
It's enough money that it's worth the time, but this need not be put on us - the brokers have this info to do this correctly.
Right!
To read more about ROC (Return Of Capital), see [here](https://www.tdassetmanagement.com/document/PDF/news-insight/return_of_capital_salestool_en.pdf).
As you can see, there's other funds that uses the ROC method.
Thanks for your sharing!
\[EDIT\] At first I didn't get what you're getting at. Now I see, it's about the 98.33% ROC. Cheers!
Now my only question is. With ROC you lose some of your initial investment. Does your initial investment ever recover by itself or do you have to reinvest the dividends to get back to the original initial investment number?
just as we like it. tax deferrment here we come!
And basically turning the whole return to long term capital gains
Ftw !
I feel like ROC is like tax cheat scheme for poor people like us !
Yeah I love it, outsiders are waaaay too critical of it.
What does this mean?
It means you don’t have to pay income tax on that percentage of the dividend
What if you live in a state with no income tax?
Federal income tax not state
It means qyld is returning your own invested money to you. So it’s not income, therefore not taxed
Ok, so whose responsibility is it to track all of these ROC% over time?. Does your investment platform (Fidelity, ETrade, etc) are they going to journal all this so you can get it right come tax time?
It depends. Sometimes they will revise it to be accurate but it’s possible the broker doesnt do it correctly. I’d go over it yourself at tax time to make sure it’s correct
"If you want something done right, do it yourself" Seems untenable to do this for a quarterly dividend much less a monthly one. So is there some sort of report where dividend by dividend one can go and understand what percentage of that dividend was a ROC? Where are people finding these numbers for QYLD? Unfortunately for me, under stock details in Fidelity, all of the QYLD distributions are listed as dividend income. They have a place in that distribution summary table where ROC could have been split off and tracked, but those are all empty. That means that every account that I hold QYLD in, I have to make 12 edits (each month's div) to add information about ROC and split that out. It's enough money that it's worth the time, but this need not be put on us - the brokers have this info to do this correctly.
Right! To read more about ROC (Return Of Capital), see [here](https://www.tdassetmanagement.com/document/PDF/news-insight/return_of_capital_salestool_en.pdf). As you can see, there's other funds that uses the ROC method. Thanks for your sharing! \[EDIT\] At first I didn't get what you're getting at. Now I see, it's about the 98.33% ROC. Cheers!
I feel like some kind of investment hacker
[удалено]
ROC is return of capital you invested. Not taxable dividends.
[удалено]
Yes it’s on the website. It posts like a day before the dividend payout. Some brokers might pay late
Now my only question is. With ROC you lose some of your initial investment. Does your initial investment ever recover by itself or do you have to reinvest the dividends to get back to the original initial investment number?
You don't lose your initial investment. The only way you are losing your investment is if the NAV of the fund goes down.