Investment anomalies?

[aga]

On 19/01/16 00:41, Jack wrote:
> On 2016.01.18 18:07, aga wrote:
>> A few months ago I committed a fix to correct absence or mis-labelling
>> of the Price field in investment transactions.  While doing some
>> checking, I noticed that a Sell transaction still is incorrect and I
>> shall be submitting a fix for this.
>>
>> Also, I've noticed that a Reinvest Income transaction appears to
>> require an income category to be specified, although the amount may be
>> zero. This doesn't seem right to me, but before I 'fix it', I'd
>> appreciate views from other users, who have an opinion on this, as I
>> know some have their own particular use of some of the fields, which
>> might not be what I would expect.  And, the user is always right...
>>
>> Allan
>
> It actually is important.  A dividend reinvestment is a dividend, where
> you immediately use the proceeds to buy more shares.  Although you don't
> have any cash income (so don't need a brokerage account) the dividend is
> income, and reported as such to the tax authority (at least in the US)
> so it is important to know what type of income it is - short or long
> term capital gains, simple dividends, .....  Also, depending on the type
> of account it is in, the income may be taxed this year, or tax deferred
> (for example in an appropriate retirement account).
>
> Also note, the income amount is NOT really zero - if it were zero, then
> you wouldn't be able to reinvest in more shares.  It's only that there
> is zero cash coming in.  Dividend reinvestment is just shorthand for a
> dividend and a buy shares.  (As I've complained before, Merrill Lynch
> actually finds a way to report it as three transactions in my monthly
> statement.  One doesn't import, I delete one, and convert the dividend
> to a dividend reinvestment.)
>
> Jack

OK, Jack, I understand that use.  So far as the category amount is 
concerned, then, as I see it, that should only ever be zero?  Otherwise, 
it will be added to the value of the extra shares in the total.  Or, can 
you see a possible need for a non-zero dividend amount?
Don't you have that strangeness with ML where they just add whole 
shares, and retain any monetary remainder towards future purchases?  Do 
you account for that, or just leave it to ML?  I suppose you can't 
really, as you don't get to receive it until it is used to fund the 
later extra share/s.

Allan