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) For Club Accounting 3, Go to Transactions > Dividend or Distribution
  • ---For Online Club Accounting (MyICLUB.com), 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 myICLUB.com 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 1090, at:https://www.iclub.com/faq/index.php?solution_id=1090

If your club uses the desktop Club Accounting 3, you will need to edit the original dividend, and also make separate entries for any part of the dividend that has been reclassified, so that the club still ends up with the correct amount of money.