How do we handle a "non-dividend distribution"?

A non-dividend distribution (also sometimes called a non-taxable distribution) should be entered as a return of capital.

  • a) Go to Accounting > Securities > Dividend or Distribution
  • b) Set Transaction Date
  • c) Set Transaction Type to Dividend or Distribution
  • d) Select your Cash Account.
  • e) In the Amount field, enter the dollar amount of the non-dividend distribution.
  • f) Set the Type to Return of Capital.
  • g) Make sure the correct security is selected, and click OK.


This sort of transaction will very often not show up until the end of the year when a security reclassifies some or all of the dividends that they issued during the year.

If your club uses the online accounting at you can use the add another type link to add one or more other types of dividend (return of capital, or capital gain) to an existing transaction, as described in FAQ 91, at: