Does Capitally track tax lot harvesting (FIFO, LIFO, specific etc)? Background: Tax lot harvesting is a strategic investment technique used to manage capital gains taxes by specifically choosing which shares (tax lots) of a security to sell. A tax lot is the record of a specific purchase of a security, including the date, number of shares, and the cost basis (price paid).
How can I record and track “Return of Capital (ROC)” adjustments on individual stock holdings? Background: Return of capital (ROC) is a distribution from an investment that is not considered taxable income, but rather a return of a portion of your original invested capital. Because it returns your own money, ROC is not taxed immediately but reduces your adjusted cost base (ACB), increasing potential capital gains tax when the investment is sold.
Tax lot harvesting: Capitally supports FIFO, LIFO, HICO (High Cost), LOCO (Low Cost), ACB, and Manual/Specific Lot Identification. To select exact lots when selling, look for the “Transaction lots to close” field in the Sell transaction form - you can pick lots by purchase date, and any remaining quantity falls back to your default method. For harvesting analysis, the Harvestable Tax column in Portfolio → Tax Due shows the maximum potential savings and the exact share count you’d need to sell to realize it. The default method is set via your tax preset, with per-account, per-asset, and per-position overrides available. Full details: https://www.mycapitally.com/help/cost-basis-methods
Return of Capital: Open any Dividend transaction, click “Show more (return of capital and income in shares)”, and enter the ROC amount in the Return of Capital field. Capitally automatically reduces your cost basis proportionally across all open lots. If the entire distribution is ROC, leave the main Value field empty. If the ROC amount ever exceeds your remaining basis, the excess is treated as income automatically. More details: https://www.mycapitally.com/help/tracking-dividends