Portfolio Conversion

Posted by JCO on April 10, 2008, 10:45 am

Please log in for more thread options

Using Quicken 2008 Home & Business

I have a 529 plan for my kids. One of their accounts did a portfolio
conversion. The name stays the same but it has all of the characteristics
of a sale and new purchase. In other words, the number of shares & the
price per share completely changed as if I have a new stock (which in
reality... I do). But since it is a 529 plan, the name has not changed.

I don't want to create a new fund & transfer everything from one to the
other. Besides, that would inaccurately show a Capital Gains (all though no
big deal in a 529 plan).

What is the proper way of doing this type of Transfer?

Posted by danbrown on April 10, 2008, 1:42 pm

Please log in for more thread options

How about treating it like a stock split? I'm assuming here that
total value ($ x #shs) before and after the event are the same ...
even though both $ and # changed.

db

Posted by JCO on April 10, 2008, 1:51 pm

Please log in for more thread options

That is a idea? And actually my account number did not change. The 529 is
with American Century but thru a middle company that manages the 529. While
the accounts change with respect to AC & the 529 company, my account number
is the same.

I just don't know what the ramifications of a stock split will do by the end
of the year... tax wise.

> How about treating it like a stock split? I'm assuming here that

> total value ($ x #shs) before and after the event are the same ...

> even though both $ and # changed.

> db

Posted by danbrown on April 10, 2008, 4:20 pm

Please log in for more thread options

> I just don't know what the ramifications of a stock split will do by the end

> of the year... tax wise.

A stock split will have no impact on your tax situation ... because
you're not receiving anything tangible. The "pieces of the pie" that
you own are just being cut differently.

So if you had $2000 before the event and $2000 after the event that
fact that you've got a different number of pieces (i.e., shares) is
irrelevant.

db

Posted by JCO on April 11, 2008, 1:09 pm

Please log in for more thread options

Thanks for the information.

>> I just don't know what the ramifications of a stock split will do by the

>> end

>> of the year... tax wise.

> A stock split will have no impact on your tax situation ... because

> you're not receiving anything tangible. The "pieces of the pie" that

> you own are just being cut differently.

> So if you had $2000 before the event and $2000 after the event that

> fact that you've got a different number of pieces (i.e., shares) is

> irrelevant.

> db