How to record mutual fund share class exchange

Posted by Route 101© on July 10, 2007, 2:30 pm

Please log in for more thread options

I'm not sure how to record in Quick H&B 2007 R5 a non-taxable exchange of
some shares of a mutual from one class to another. After holding class B
shares for the required time, they converted to class A shares. Downloading
directly from the FI (UBS) did not record the change, but instead triggered
the placeholder message, which I canceled.

Neither corporate acquisition nor spin-off seem to apply here. Corporate
name change won't work because it's only some of the shares. Adding and
removing shares seems to lose the cost basis history. Buying and selling,
even making the total dollar amounts equal, also seems to lose cost basis
history and creates capital gains and losses.

I'd didn't find anything in the Quicken help. Still searching the Quicken
user forum with no success so far.

I'd appreciate any useful suggestions.
..............................
I used to be indecisive. Now I'm not sure.

Posted by Route 101© on July 10, 2007, 3:34 pm

Please log in for more thread options

Appears that Add/Remove currently is the least undesirable method, although
other more involved and manually intensive approaches have been suggested.
Quicken currently does not seem to have a function to do this directly.

http://www.quickencommunity.com/webx/Forums/Quicken%20Personal%20Finance%20Software%20Forum%20for%20Windows/Investments%20in%20Quicken/2681/3?13
..............................
I used to be indecisive. Now I'm not sure.

> I'm not sure how to record in Quick H&B 2007 R5 a non-taxable exchange of

> some shares of a mutual from one class to another. After holding class B

> shares for the required time, they converted to class A shares.

> Downloading directly from the FI (UBS) did not record the change, but

> instead triggered the placeholder message, which I canceled.

> Neither corporate acquisition nor spin-off seem to apply here. Corporate

> name change won't work because it's only some of the shares. Adding and

> removing shares seems to lose the cost basis history. Buying and selling,

> even making the total dollar amounts equal, also seems to lose cost basis

> history and creates capital gains and losses.

> I'd didn't find anything in the Quicken help. Still searching the Quicken

> user forum with no success so far.

> I'd appreciate any useful suggestions.

> ..............................

> I used to be indecisive. Now I'm not sure.

Posted by John Pollard on July 10, 2007, 3:41 pm

Please log in for more thread options

Route 101© wrote:

> I'm not sure how to record in Quick H&B 2007 R5 a non-taxable

> exchange of some shares of a mutual from one class to another.

> After

> holding class B shares for the required time, they converted

> to class

> A shares. Downloading directly from the FI (UBS) did not

> record the

> change, but instead triggered the placeholder message, which I

> canceled.

> Neither corporate acquisition nor spin-off seem to apply here.

> Corporate name change won't work because it's only some of the

> shares. Adding and removing shares seems to lose the cost

> basis

> history. Buying and selling, even making the total dollar

> amounts

> equal, also seems to lose cost basis history and creates

> capital

> gains and losses.

> I'd didn't find anything in the Quicken help. Still searching

> the

> Quicken user forum with no success so far.

> I'd appreciate any useful suggestions.

> ..............................

> I used to be indecisive. Now I'm not sure.

--

John Pollard
First initial underscore Last name at mchsi dot com
Please reply to newsgroup

Posted by John Pollard on July 10, 2007, 3:49 pm

Please log in for more thread options

Route 101© wrote:

> I'm not sure how to record in Quick H&B 2007 R5 a non-taxable

> exchange of some shares of a mutual from one class to another.

> After

> holding class B shares for the required time, they converted

> to class

> A shares. Downloading directly from the FI (UBS) did not

> record the

> change, but instead triggered the placeholder message, which I

> canceled.

> Neither corporate acquisition nor spin-off seem to apply here.

> Corporate name change won't work because it's only some of the

> shares. Adding and removing shares seems to lose the cost

> basis

> history. Buying and selling, even making the total dollar

> amounts

> equal, also seems to lose cost basis history and creates

> capital

> gains and losses.

> I'd didn't find anything in the Quicken help. Still searching

> the

> Quicken user forum with no success so far.

Corporate Acquisition is the only Quicken transaction I know
that applies the sort of logic needed ... but unfortunately, it
applies to all shares of the acquired "company".

However, I think you're mistaken that Add Shares loses cost
basis. If you use the "Enter Transactions" button and look at
the "Add - Shares Added" transaction form, you'll note that the
Add Shares transaction allows you to tell Quicken to cost of the
lot and date it was acquired ... both useful for your purposes.

I think you can use one "Shares Removed" transaction to remove
all appropriate lots of the class B shares; then one Add Shares
transaction for each "lot" of class B shares that converted to
class A shares. You can have a different number of shares in
the class B Add Shares transaction than were in the removed
class A lot, but the same cost and same acquisition date as the
class A lot.

--
John Pollard
First initial underscore Last name at mchsi dot com
Please reply to newsgroup

Posted by Route 101© on July 10, 2007, 4:23 pm

Please log in for more thread options

Yes, you are correct, and your post corresponds to the various info. from
senior Quicken user forum members. Using corporate name change as one
suggested requires manually deleting the lots not converted.

I used your approach and entered the total cost (basis) from the removed
class B shares as the cost of the added class A shares and let Quicken
calculate the price per share.

Unfortunately, my statement shows a total lot amount "exchanged from" that
does not seem to correspond to my individual lots in Quicken. That makes it
difficult to enter a real original acquisition date for ST/LT and
performance purposes; at least they are in IRAs. I may just use the earlier
purchase dates instead of the exchange dates, because they all will be LT
when they convert, and there are no Schedule Ds involved anyway.

Thanks for your reply.
--
..............................
I used to be indecisive. Now I'm not sure.

>> I'm not sure how to record in Quick H&B 2007 R5 a non-taxable

>> exchange of some shares of a mutual from one class to another. After

>> holding class B shares for the required time, they converted to class

>> A shares. Downloading directly from the FI (UBS) did not record the

>> change, but instead triggered the placeholder message, which I

>> canceled.

>> Neither corporate acquisition nor spin-off seem to apply here.

>> Corporate name change won't work because it's only some of the

>> shares. Adding and removing shares seems to lose the cost basis

>> history. Buying and selling, even making the total dollar amounts

>> equal, also seems to lose cost basis history and creates capital

>> gains and losses.

>> I'd didn't find anything in the Quicken help. Still searching the

>> Quicken user forum with no success so far.

> Corporate Acquisition is the only Quicken transaction I know that applies

> the sort of logic needed ... but unfortunately, it applies to all shares

> of the acquired "company".

> However, I think you're mistaken that Add Shares loses cost basis. If you

> use the "Enter Transactions" button and look at the "Add - Shares Added"

> transaction form, you'll note that the Add Shares transaction allows you

> to tell Quicken to cost of the lot and date it was acquired ... both

> useful for your purposes.

> I think you can use one "Shares Removed" transaction to remove all

> appropriate lots of the class B shares; then one Add Shares transaction

> for each "lot" of class B shares that converted to class A shares. You

> can have a different number of shares in the class B Add Shares

> transaction than were in the removed class A lot, but the same cost and

> same acquisition date as the class A lot.

> --

> John Pollard

> First initial underscore Last name at mchsi dot com

> Please reply to newsgroup