Mutual Fund Conversion from Class B Shares to Class A Share

I have a mutual fund investment which converts from Class B Shares to Class A Shares 72 months after the investment. The conversion is not considered a taxable event. Selling Class B Shares
outright is a taxable event.
I have these investments set-up in single Investment Account within Quicken. Each month I record off the statement a sale of Class B and a purchase of Class A. Example:
6/1/2005 - Sell 100 Shares Class B $150 6/1/2005 - Buy 101 Shares Class A $150
(Note the NAV of the classes are generally not the same which is why the shares differ).
The Sell transaction triggers a Realized Gain (Long Term) within Quicken. Is there a better way to enter this so a Realized Gain is not recorded - or have the gain classified as Unrealized?
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Oilcan wrote:

What I do for these is a ShareOut/ShareIn pairing. The important thing is to preserve the cost basis and purchase date. So, when you move the Class B shares out, it should ask you to pick which ones you're moving. Once you select them ( probably via FIFO ), that dialog will show you the cost basis. Write that down, along with the purchase date. When you move the A class shares in, there are fields which allow you to specify the cost and purchase date; copy in what you wrote down.
This is with Q04. I've been doing it like this for a while, so there may be more automated ways now.
Cheers, ANdyG
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Andreas Gottstein wrote:

And if you should forget the cost or purchase date, you can just run a Capital Gains report which will show both (with $0.00 capital gains).
--
John Pollard
First initial underscore Last name at mchsi dot com
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Thank you all for your responses. I am working with conversions that began in 4/2002. I've deleted the transactions from 4/1/2002 forward and have started re-entering the data.
For 4/1/2002 Removed 33.664 shares of Class B using FIFO. Quicken removed 21.174 shares from the 4/25/1996 lot and 12.49 share from the 5/20/1996 lot. The balance in the 5/20/1996 lot is 8.684 shares. I then entered the new investment and reinvested dividends for 4/2002 on Class B.
I recorded two Add Shares for Class A - 21.198 shares and 12.556 for the 4/25 & 5/20/1996 acquired dates for tax purposes. I then entered the reinvested dividends for 4/2002 on Class A. Everything balances for 4/2002.
Following the same logic for 5/1/2002, Removed 33.874 share of Class B. Again using FIFO, Quicken should remove the first 8.684 shares from the 5/20/1996 lot, .143 shares from the 5/24/1996 lot, etc. Quicken starts by removing .098 shares from the 5/24/1996 lot, the xx shares from the 6/20/1996 lot, etc.
Am I not understanding something here? It looks like an ugly bug in Quicken to me. I am using 2005 Premier Release 3.
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Yes, on the date of conversion, do a ShrsOut transaction and a ShrsIn transaction with the acquisition date as the original purchase date of the shares you are converting. That is similar to the Corporate Acquisition that Quicken use, but only applies to one lot whereas the Corp. Acq. applies to all lots of the shares you own.
--
Mike B



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Thanks all for your help. I had to change some settings on my investment and I got it to work. One 'buy' morphed upto six entries in one month due to lots.
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