I understand the tax efficiency concepts of NEOS (specifically SPYi, QQQi), just trying to understand how to document changes to the cost basis as I get dividends. Even though I won't know the Return of Capital percent until end of year, still want to estimate so I know how to calculate my estimated taxes.
So like if I wanted to use Excel to track my RoC and how much is actually dividends and increases my cost basis, take this scenario:
Stock costs $50/share
Have $50,000
So I buy 1,000 shares
Dividend comes in that is say 96% ROC. Let's say the price never changes for arguments sake
I get $500 in dividends which I reinvest giving me 10 additional shares.
So I now have 1010 shares
However what is my adjusted cost basis now?
Is it $50,000 + $500? Probably not.
Is it $50,000 + $500 (new shares) - $452 (96% RoC)
Is it $50,000 + $20 (0.04% not RoC) - $452 (96% RoC)
Something else?