Quicken issue with stock sales post-spinoff

Please watch out for the following issue where Q09 calculates the incorrect cost basis for both the capital gains report in Quicken and when importing to TurboTax. This applies to shares of a parent company purchased after a spin-off.

I sold Citigroup and Morgan Stanley in 2008. I acquired these before Citigroup spun off Travelers and MS spun off Discover, however I continued to reinvest dividends in C and MS following the spin-offs.

I found that Quicken correctly adjusted the cost basis of shares acquired before the spinoffs when calculating capital gains. However, Quicken also adjusted (improperly) the cost basis downward for shares acquired after the spinoffs. This overstated capital gains on these shares and would have resulted in few hundred dollars of overpaid taxes had I not taken the time to reconcile TurboTax with my brokerage statement.

I am using FIFO accounting, not average cost.

I hope this saves someone else some time and money.

Reply to
Gary Gambino
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Hi, Gary.

Are you SURE?

Quicken has never done to me, and I've never heard anyone else say that it happened to them. And I see no reason why Quicken would adjust the basis of shares acquired after a spin-off UNLESS some dates were recorded incorrectly.

RC

Reply to
R. C. White

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