My mutual fund shares were 'converted' by the fund from one class to another that has lower management fees. The fund name is the same but the shares have different symbols, quantity and share value. The symbol change is from VWINX to VWIAX. The total value of my shares is unchanged after the conversion. The mutual fund says this conversion is not a taxable event because the shares are in the same fund.
How do I handle this in Qulcken 2002 Basic so it does not show a capital gain?
Thanks, Carl
use the "Corporate Acquisition".
Carl posted My mutual fund shares were 'converted' by the fund from one class to another that has lower management fees. The fund name is the same but the shares have different symbols, quantity and share value. The symbol change is from VWINX to VWIAX. The total value of my shares is unchanged after the conversion. The mutual fund says this conversion is not a taxable event because the shares are in the same fund.
How do I handle this in Quicken 2002 Basic so it does not show a capital gain?
Carl says: Thanks danbrown. My Quicken 2002 Basic doesn't seem to have Corporate Acquisition (stock for stock) although the Help file tells me how to use it ??? When I follow the Help instructions, I reach a dead end.
HMM, Well, what CorpAcq does is generate a "ShrsOut" transaction for zero dollars for each tax lot for the old security followed by a "ShrsIn" transaction for the new security (with the new # of shares and the appropriate $/sh).
Depending upon how many tax lots you have for the security, and with a mutual fund it could easily be more than a few, the "pain factor" in that amount of manual data entry could be considerable ... such that it may be worth it in time savings to consider an upgrade of your Q software.
Good Luck, (and sorry that I didn't realize that Basic-02 didn't have a CorpAcq function - I'm on H&B 2005 and trying to remember WHICH version has WHICH features is a might overwhelming), Dan
Dan, I did a Shares Out on the old symbol and a Shares In on the new symbol. This appears to fix Quicken so it no longer shows a cap gain on the old symbol.
Q now calculates gain on the new symbol from the Shares-In price.
This may screw up my income tax report sometime in the future, but the Mutual Fund company will prolly have it right on their year-end statement.
Thanks for the help Carl
"Probably"?? (assuming that's what 'prolly' meant to be) - I say "Absolutely!"
IMNSHO, you're never wise to use Quicken's view of the tax world vs. statements and 1099 forms provided directly by FIs! Those are the forms and information that the IRS is receiving directly from the FIs, so they're unlikely to accept any discrepancies you might claim because your local Q files have the umbers differently.
Despite a lot of time I put in to keeping things 'correct', I never trust Quicken's view of the tax world (via it's reports) vs. FI statements. I also never trust Quicken to be able to export information into TurboTax that can be verified against FI-provided source documents for the same information. If there are discrepancies, you need to make Quicken agree with the FI's view, not the other way around. (And if indeed Quicken *is* right somehow, then the FI needs to also change on their end so again the FI has the correct information).
Again, just my two cents. YMMV.
-------------------------------- Regards -
- Andrew
If you did not own any shares of the new class of the funds share before, this is how I handled this event in the past: I edited the security, changing the symbol in your case from VWINX to VWIAX and it's name with the new class. I then would do a stock split transaction with old shares (shares of old class), new shares (shares of new class) and share price for the new class, and put in the memo field that you are converting from class ? to class ?.
Glad you've got a sense of humor Carl!
And my word 'umbers' in my original post really was meant to be 'numbers', obviously! Now, I spell checked that originally, so I don't know how my mistake on *that* word got through Oh well!
"Umber" is a pigment and the name of a group of colors/shades (raw umber, burnt umber) produced by the pigment; so you could have a painting containing a number of "umbers".
As for a Quicken connection; maybe that was the brown shade used back in older Quicken versions. :)
Thanks John - I never heard of that word, and now I see how spell check thought it was ok. (Need to use a good 'contextual checker', I guess!).
Boy, the things one learns thru the fora!
Which begs the question, did you mean "fora" or "flora?"
Notan
fora. Plural of 'forum', or, these newsgroups.
Just checking!
Notan
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.