Actually tt depends on the situation. If you are actually receiving cash, the above method works fine. But if you are writing off the basis, add an expense or other account to the Multiple Distribution screen so the cash total is zero.

However you do it, the asset will no longer be in balance because the basis + Unrealized Gain or Loss no longer equals the balance, since the basis has changed. To fix this, update prices with Enter Prices to Update Securities. This will add the correct entry to UGL. Run Cost Basis Balance sheet to verify there is nothing in the Cost Basis column for Unrealized Gains and Losses.

See also

• Changing Cost Basis
• Adjust the cost basis on bonds in journal?
• Cost basis settings
• Recording Stock Distributions from Partnerships
• stock dividend with cost basis change
• update cost basis of sold stock in prior year