Best way to model a Variable Universal Life (VUL) policy with correct cost basis

for the asset account method & have been tracking the buy & sell transactio ns within the policy for years.

the cost basis. However, for VUL, my understanding is that the cost basis is the sum of the premiums paid into the policy. Most people wouldn't be concerned with this unless you have to take a draw against the value of the policy at some point. You don't owe any tax until you make a withdrawal t hat exceeds the cost basis. Even if you do exceed the cost basis, that's u sually done w/ a loan instead of a w/drawal, but I still believe the cost b asis is still worth tracking (& showing).

an initial Buy for the securities bought with each premium, then use a "Sha res Out" concept for the sell transactions. However, my instincts tell me that the Share Out will reduce the cost basis.

Finally got around to testing.

In case anyone else is curious, using a "Remove - Shares Removed" transacti on type does, indeed, reduce the cost basis. The cost basis should remain flat, so that won't work.

The only combination I've found so far would be to enter the sell transacti ons behind each monthly premium, then follow that up with a ficitious "Retu rn of Capital" transaction that is < $0 to bring the cost basis back up (ma jor PITA).