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Posted by Jeff on June 3, 2007, 6:59 am
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> Jeff wrote:
>> Doug wrote:
>>> Jeff wrote:
>>>> In my investment accounts they have a sweep fund into which
>>>> they
>>>> sweep loose cash into. It is sort of a money fund. they
>>>> just
>>>> changed the
>>> fund they use to a different fund. How do I deal with this
>>> in
>>> Quicken Deluxe 2006?
>>>
>>>
>>> Ignore it. A money market fund is, from the Quicken
>>> perspective,
>>> just an interest bearing savings account. The "share value"
>>> of money
>>> market fund shares is always $1.00 Who cares what the name
>>> is?
>>>
>>> Doug
>>
>> Well I need to do something about it because when I download
>> my
>> monthly transactions, when a downloaded transaction takes
>> money out
>> of the new money market fund to buy some security, Quicken
>> asks me to
>> accept it as a "short" sale since all the actual cash resides
>> in the
>> other money market's name and there are not sufficient funds
>> to cover
>> the money fund "sale" .
>>
>> So my options appear to be to :
>> a) just rename the old money fund security name (but that
>> would make
>> my Quicken records no longer match the broker's paper records)
>> or
>> b) create a transaction "selling" all the old money fund
>> securities
>> and then use that money to purchase securities i the name of
>> the new
>> fund security. Since both are worth $1 each, I think that
>> might be
>> the more correct way to deal with this from the accounting
>> point of
>> view.
>> But I am no accountant which is why I was asking here from the
>> Quicken
>> experts. Maybe Quicken has a more elegant way to deal with
>> this.
>
> As far as I can tell; you have two choices, which depend on what
> you care about tracking your past involvement with this
> security.
>
> You can, as you originally suggested, just change the name of
> the security. Quicken doesn't care, the IRS doesn't care: only
> you can care: it's a mm fund, there are no profit or tax issues
> involved.
>
> Or, you can sell all the shares in the original mm fund and use
> the resulting "cash" to purchase the same number of shares in
> the new mm fund. Since there can be no capital gains involved,
> this won't cause a tax problem. And it will allow you to keep
> track of the two mm funds you owned, for the periods you owned
> them ... including the ability to track their (potentially)
> different "yields".
>
> I don't think that the different treatments are significant; but
> the ultimate answer is up to you.
>
> --
> John Pollard
Thank you John, that's what I thought. I appreciate the help.
Jeff
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