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Tax-free mutual fund exchange problems

Vanguard did a tax-free switch of shares from VTSMX to VTSAX in one of my accounts. What I wanted to do is to remove the old shares and put in the new shares with the same prices (naturally) and the same purchase dates (to keep the long/short-term CG accurate). I didn't see any way to do this. Is there a way? Probably not is my guess.

What I did as a try, in a weak moment, was to do a Corporate Acquisition, a 1 for 1 stock trade. Quicken inserted share removal and share addition transactions, with the right prices, but the wrong dates. This was also bad because I still have some VTSMX in another account. I don't see any way to undo this action. I can delete the remove/add transactions, but any future transactions with VTSMX get put in as VTSAX instead.

Any way to undo this mistakenCorporate Acquisition without restoring my backup file and re-entering subsequent transactions?

Reply to
Jim Blue
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I believe the Corporate Acquisition is the right way to go. The AddShrs transactions resulting from the transaction has two dates, the transaction date and the acquisition date. You can only see the acquisition date if you edit the transaction. That date should reflect your original purchase date and is used to calculate LT Gains etc.

As for the transactions in another account, I believe (but have not tried) that you can simply delete the ShrsOut (Remove) and ShrsIn (Add) transactions. They are all clustered on the date of conversion. After that you should be able to either use the original security to transact in those shares or perhaps you might have to recreate the security, although I believe the former is correct.

Reply to
Mike B

Thank you.

You are right that the ShrsIn shares have the correct acquisition date, so my concern there was unfounded.

In the account where VTSMX should remain, I *can* just delete the ShrsOut and SHrsIn transactions. This leaves this account having VTSMX shares, correctly.

However, if I enter a new transaction with VTSMX, it gets changed to VTSAX automatically. I can't delete the VTSMX security, as it's used in prior transactions. I tried adding a "new" VTSMX, but it doesn't change anything.

Reply to
Jim Blue

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