When a stock gives a "Return Of Capital", does Schwab keep track of the new cost basis?

[teelainen]

When a stock gives a "Return Of Capital", does Schwab keep track of the new cost basis?

My stock is held at Schwab

[increment]

I believe that they are supposed to, just as when there are spinoffs and stock splits. Unfortunately, you (and your broker!) may not learn that a dividend was (perhaps partially) non-taxable until tax season, when the 1099-DIV comes out. And then there may be revised 1099-DIVs later.

[boomer_techie]

When a stock gives a "Return Of Capital", does Schwab keep track of the new cost basis?

My stock is held at Schwab

I've had "Return Of Capital" from ETF's held at Schwab. The basis does get (quietly) adjusted by the ROC. This adjustment happens during 1099 season. They give no notification of the basis adjustment, nor is anything shown when checking details about the security. The details simply won't match prior details that one has recorded.

[teelainen]

When a stock gives a "Return Of Capital", does Schwab keep track of the new cost basis?

My stock is held at Schwab

I've had "Return Of Capital" from ETF's held at Schwab. The basis does get (quietly) adjusted by the ROC. This adjustment happens during 1099 season. They give no notification of the basis adjustment, nor is anything shown when checking details about the security. The details simply won't match prior details that one has recorded.

What is ROC ?

[boomer_techie]

What is ROC ?

Return Of Capital

[HueyLD]

When a stock gives a "Return Of Capital", does Schwab keep track of the new cost basis?

My stock is held at Schwab

Such adjustments should be routine for a brokerage. Thus, you can expect a major firm like Schwab to adjust your cost basis for ROC.

Same with stock split, spin-off, stock dividends, etc. Again, such transactions are routine for brokerages.

[teelainen]

When a stock gives a "Return Of Capital", does Schwab keep track of the new cost basis?

My stock is held at Schwab

Such adjustments should be routine for a brokerage. Thus, you can expect a major firm like Schwab to adjust your cost basis for ROC.

Same with stock split, spin-off, stock dividends, etc. Again, such transactions are routine for brokerages.

If I transfer my assets from Schwab to another major brokerage, does the adjusted cost-basis transfer over as well?

[HueyLD]

Such adjustments should be routine for a brokerage. Thus, you can expect a major firm like Schwab to adjust your cost basis for ROC.

Same with stock split, spin-off, stock dividends, etc. Again, such transactions are routine for brokerages.

If I transfer my assets from Schwab to another major brokerage, does the adjusted cost-basis transfer over as well?

You will need to download detailed cost basis records before a transfer. And check the basis after such a transfer. You may have to make corrections at the new brokerage using your downloaded records from Schwab.

Stuff is known to happen even with an ACATS transfer.