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Posted by wbertram on January 17, 2007, 10:13 pm
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Hopefully a user of 2006 Deluxe will hop in here. I know some of the
Quicken versions have more advanced investment procedures than Quicken
Basic. I happen to be using Basic.
Sylvia wrote:
> I am using Quicken 2006 Deluxe.
>
> Katie
>
>
>> Eric:
>>
>> Companies issue and maintain records on fractional shares of stock.
>>
>> Quicken works quite well with fractional shares of stock.
>>
>> Except for those bits of misinformation, the procedure you describe is
>> workable.
>>
>> Katie:
>>
>> If you follow the procedures described by Eric (but using fractional
>> shares of course), you will have the correct number of ATT shares at the
>> correct price. Check your figures with those which ATT will provide
>> when you receive their paperwork.
>>
>> But, there are two things to be aware of.
>>
>> 1) The exchange of SBC for ATT will be tax free, but Quicken will
>> (incorrectly) report the sale of SBC as a capital gain, and
>>
>> 2) Quicken will have an incorrect acquisition date for the asset. The
>> acquisition date for the ATT shares should be the acquisition date of
>> the original SBC shares, not the date the SBC shares were exchanged for
>> ATT shares.
>>
>> Depending on the version of Quicken you have (Basic, Deluxe, etc., and
>> Year), there may be better ways to record this transaction which will
>> avoid these two problems.
>>
>> Eric Bloch wrote:
>>> Except for mutual funds you cannot have fractional shares.
>>>
>>> 1. You must go back thru ALL of your Bellsouth (BS) transactions and
>>> eliminate fractions. If they were caused by splits or dividends reinvested
>>> you received a book entry for the shares including fractions and then the
>>> fractions were immediately sold for a gain or loss which was long or short
>>> depending on the original purchase date.
>>>
>>> 2. Now take the whole shares and, in Quicken, sell all of them on the date
>>> of ATT purchase.
>>>
>>> 3. Use ALL of the funds received to purchase the 1.325 X (BS shares) of ATT.
>>>
>>> 4. If you now have fractions of ATT enter a sell transaction for the $$ you
>>> received for them. For IRS the gain or loss goes back to the original date
>>> of BS purchase but Quicken will think they were acquired on the day of
>>> transfer. Same goes for when you finally sell the remaining ATT shares.
>>>
>>> Eric
>>>
>>>> On December 29, 2006 I was holding 809.6203 shares of BellSouth Stock.
>>>> On that date the exchange to AT&T took place. Could someone please
>>>> tell me how to enter this transaction in Quicken 2006 and after making
>>>> the change will the cost basis be maintained so that it will be
>>>> available for future tax purposes?
>>>>
>>>> BellSouth Share Exchange
>>>> BellSouth shares 809.6203
>>>> Exchange Rate 1.325
>>>> AT&T Stock Credited 1,072.746898
>>>>
>>>> Thank you for any help.
>>>>
>>>> Katie
>>>
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