Realty Income Return of Capital Basis Reduction | 10-Year O
PROOF LOG #009
Realty Income Return of Capital Basis Reduction | 10-Year O
When broker average cost says $52.24 but the 10-year corrected basis is $45.55.
The average cost summary does not show 10 years of ROC erosion.
The board surfaces the defended value made visible by the correction.
Same REIT. One average cost summary. Ten years of hidden basis erosion.
FDL Pro processes the ROC chain before the sale is evaluated.
The corrected basis becomes $45.55 per share, and the missing ten-year path becomes reviewable.
WATCH THE RECONSTRUCTION
Watch 10 years of ROC basis erosion become visible on the board.
- broker average cost shows $52.24
- FDL prepares $45.55 after 10 years of ROC
- Tax Alpha Dashboard surfaces a $6,690.70 ROC shield
- Tax Report reflects the corrected $45,549.30 basis
- Audit Trail preserves the full 10-year path
EXECUTIVE PROOF
Broker View
- average cost may remain at $52.24
- annual ROC erosion is not visible on the board
- the operator is left with a summary, not a reviewable basis path
- future gain can be misstated until liquidation
FDL Registry of Truth™
- 10 years of ROC adjustments are anchored to the 2016 origin lot
- the $6,690.70 ROC shield remains visible on Tax Alpha Dashboard
- Tax Report reflects the corrected $45,549.30 basis for 1,000 sh Realty Income
- Audit Trail preserves the full adjusted basis path
PHASE 1 — THE EROSION
Return of Capital did not create free value.
It reduced basis over time.
Across 10 years, annual ROC distributions quietly eroded the 2016 origin lot from $52.24 to $45.55.
What looks stable at the summary layer can still be structurally incomplete.
PHASE 2 — THE VISIBILITY
FDL does not rely on the broker average cost alone.
It processes the ROC adjustment chain, surfaces the shield on Tax Alpha Dashboard, reflects the corrected basis in Tax Report, and preserves the path in Audit Trail.
FDL does not manufacture a number.
It makes the tax work visible.
FORENSIC EVIDENCE
What must remain intact
- Origin lot continuityThe 2016 acquisition must remain anchored to the pre-erosion history.
- Basis continuityAnnual ROC reductions must remain connected to the same lot.
- Liquidation traceThe corrected basis must carry into the final sale record.
What FDL makes legible
- Tax Alpha DashboardShows where the ROC shield sits.
- Tax ReportShows the prepared sale result.
- Audit TrailRecords the 10-year basis path and lot lineage.
This is the point of the white-box architecture:
result, shield, and trace remain separate and reviewable.
WHY THIS CASE MATTERS
If ROC basis erosion stays hidden, future gain is misstated.
The problem is not the yield itself.
It is basis visibility.
A comforting average cost can hide deferred tax exposure.
WHAT FDL IS SHOWING HERE
FDL Pro processes 10 years of ROC before the sale is evaluated.
It anchors the erosion to the correct 2016 lot.
The board shows defended value, the tax file shows the result, and the audit path shows why it stands.
CHOOSE YOUR NEXT STEP
FinDash Lens Pro — deterministic tax infrastructure for prepared, in-scope records.