Investment Distribution
Record this when your holdings pay dividends or distributions, especially those containing return of capital.
What you enter
| Field | Required | Description |
|---|---|---|
| Date | Yes | Payment date when cash was deposited |
| Symbol | Yes | Ticker symbol of the security |
| Total amount or Amount per unit | Yes | Total distribution, or per-share amount |
| Return of capital per unit | No | RoC portion per unit (from T3 Box 42 or fund company breakdown) |
| Reinvested gains (phantom distributions) per unit | No | Phantom or reinvested amount per unit that increases cost base without changing units |
| Units | No | Defaults to all units held; override if needed |
What happens
Return of capital portion:
- The RoC split follows the holding's borrowed/personal cost ratio. If 80% of the cost base is borrowed, 80% of RoC returns as borrowed capital
- If the brokerage is in cash state, the borrowed portion is reclassified from invested principal to non-deductible principal and becomes borrowed brokerage cash. The personal portion becomes personal cash
- If the brokerage is in margin state, distribution cash repays margin first. Borrowed capital recovered from a margin-funded investment can directly reduce investment-purpose margin debt before any remaining cash is applied to the rest of the margin balance
- Holding's cost base decreases by the full RoC amount (capped at current cost base)
Income portion (dividends, etc.):
- In cash state, Personal Cash increases by the income amount
- In margin state, income cash repays margin first before any excess becomes personal cash
- No holding cost base changes unless there is a return of capital or reinvested distribution amount
Reinvested distribution portion:
- The reinvested amount increases the holding's cost base
- It is added entirely to the personal portion of cost base
- Borrowed invested principal and units held stay unchanged
- No cash is added to the brokerage account from this portion
Common questions
What if I don't know the RoC breakdown yet? Record with zero RoC initially. Edit later when your T3 arrives — the app recalculates all subsequent balances.
Where do I find RoC information? T3 slips (Box 42), fund company websites under "distributions" or "tax information," or estimated breakdowns published during the year.
Learn more
- Return of Capital — why RoC matters and the compounding effect over time
- Brokerage margin — how incoming cash behaves when margin exists
- CRA rules applied — how RoC follows the tracing principle