I received a dividend of 100.87, and it was used to purchase 2.434 shares of stock. When I look at my final tax paperwork from my investment firm, it counts $84.63 as my cost basis for short term, and the rest in long term. Quicken on the other hand, counts it all as short term. Am I recording this in Quicken 2005 incorrectly?
Thanks!
It sure seems that way.
It sounds like you got some capital gains distributions and reinvested them. Since some of the gains were short term and some long term, it takes at least two transactions to enter them correctly. Quicken has a transaction (an Action value) for short term cap gains reinvested and one for long term cap gains reinvested. Alternatively, I suppose you could take a short term and a long term distribution as cash (Quicken has transactions for that too), then add a third transaction to purchase more shares with the total of the cash received from the distributions.
Have something to add? Share your thoughts — no account required.
Ask the community — no account required