Direct investments in partnerships or S-corporations differ from investments in other securities, from a Captools/net accounting point of view, only in that certain non-cash gains and losses can flow through to the investor.  Because these non-cash transactions can affect the investor's taxes, these need to be accounted for in Captools/net so as to achieve correct cost bases and after-tax ROI results.

 

Non-cash partnership or S-corporation income, should be coded using the NCI (non-cash income) transaction as shown in Partnerships / Direct Investments.

 

Depreciation and depletion should be coded using the DPR transaction code, also as shown in Partnerships / Direct Investments.  Depreciation transactions decrease estimated taxes and reduce the investment cost basis.