Quicken ROC and IRS

Hi, Tod.

I would appreciate it too. It has been so long since I had to deal with this subject - or even think seriously about it - that I'm sure my advice now would not be dependable. And I hope I don't have to try to find that conversation in my archives. ;^}

RC

-- -- R. C. White, CPA San Marcos, TX (Retired. No longer licensed to practice public accounting.) snipped-for-privacy@grandecom.net Microsoft Windows MVP (2002-2010) (Using Quicken Deluxe 2013 R 11 and Windows Live Mail in Win8 x64)

I seem to recall some years ago, someone smart like RC White identified through usenet that Quicken's process of allocating a single ROC receipt across multiple lots was consistent with then applicable IRS approved methodologies. That process was to allocate the ROC to each lot in proportion to that lot's basis - independent of the number of shares in each lot. If I had a $100 lot and a $500 lot and received a $60 ROC, $10 would be applied to the first lot reducing the basis to $90.

Can anyone point me to IRS approval or validation of that process?

It now appears that QW2013 is taking a different tack applying the ROC to the first lot, until that lot's basis gets to $0, then moving on to the next lot. I would appreciate input from knowledgable accounting types.