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Re: Adjusting cost basis noaddress 07-01-2006
Posted by noaddress on July 1, 2006, 1:31 pm
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 On Thu, 29 Jun 2006 22:23:25 GMT, "Les"

>I maintain my parents brokerage data in Quicken 2006. My dad reccently
>passed away and I will need to adjust the cost basis of all their holdings.
>Has anyone done this or know how to do this?
>
>Thanks in advance for any help.
>
I do not know if it is the best way or not, but what I did was to do a
"remove shares" on the date of death and then do an "add shares" to
put them back into the account. Fill in the total cost and date for
the new basis when you enter them.

Unfortunatly this shows up as a sale on the Quicken reports and will
mess reports and graphs up for a while. If anyone comes up with a
better way, I will note with interest.


Posted by happycard on July 1, 2006, 8:32 pm
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 noaddress@noisp.com wrote:
> On Thu, 29 Jun 2006 22:23:25 GMT, "Les"
>
>> I maintain my parents brokerage data in Quicken 2006. My dad reccently
>> passed away and I will need to adjust the cost basis of all their holdings.
>> Has anyone done this or know how to do this?
>>
>> Thanks in advance for any help.
>>
> I do not know if it is the best way or not, but what I did was to do a
> "remove shares" on the date of death and then do an "add shares" to
> put them back into the account. Fill in the total cost and date for
> the new basis when you enter them.
>
> Unfortunatly this shows up as a sale on the Quicken reports and will
> mess reports and graphs up for a while. If anyone comes up with a
> better way, I will note with interest.
>

Make a copy of the file first.

When I had to deal with several years ago, I created a new account in
the file copying the account I needed to adjuct. Then I went back to
the original purchase entries and entered the new price adjusted for
splits. This keeps the long term versus short term holding period
correct. When you "step up basis" you keep the original owners holding
period. Example
Stock A 2000 shares current priced $20 was original bought as 400
shares, assumes some sort of compounded splitting, so put a price of $4.

I now hide the account with the original uncorrected price.

BTW - check with your tax adviser, My mother died on a weekend and I was
told to use the average of the high and low for Friday and Monday. Even
if the death was on a trading day, you may be told to use the average of
the HIGH and LOW and NOT the closing price.

Posted by Steven Latus on July 3, 2006, 4:38 pm
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happycard wrote:
> noaddress@noisp.com wrote:
>> On Thu, 29 Jun 2006 22:23:25 GMT, "Les"
>>
>>> I maintain my parents brokerage data in Quicken 2006. My dad
>>> reccently passed away and I will need to adjust the cost basis of all
>>> their holdings. Has anyone done this or know how to do this?
>>>
>>> Thanks in advance for any help.
>> I do not know if it is the best way or not, but what I did was to do a
>> "remove shares" on the date of death and then do an "add shares" to
>> put them back into the account. Fill in the total cost and date for
>> the new basis when you enter them.
>>
>> Unfortunatly this shows up as a sale on the Quicken reports and will
>> mess reports and graphs up for a while. If anyone comes up with a
>> better way, I will note with interest.
>>
>
> Make a copy of the file first.
>
> When I had to deal with several years ago, I created a new account in
> the file copying the account I needed to adjuct. Then I went back to
> the original purchase entries and entered the new price adjusted for
> splits. This keeps the long term versus short term holding period
> correct. When you "step up basis" you keep the original owners holding
> period. Example
> Stock A 2000 shares current priced $20 was original bought as 400
> shares, assumes some sort of compounded splitting, so put a price of $4.
>
> I now hide the account with the original uncorrected price.
>
> BTW - check with your tax adviser, My mother died on a weekend and I was
> told to use the average of the high and low for Friday and Monday. Even
> if the death was on a trading day, you may be told to use the average of
> the HIGH and LOW and NOT the closing price.

FYI, if you sell property that you obtained by inheritance, the gain is
considered to be long-term no matter how long you or the decedent held
the property.

On Schedule D you would list the acquisition date as "Inherited" and
list the actual sell date.

Steve

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