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Cost Basis when a mutual fund is replaced with another

Unknown
Unknown Member
edited May 2018 in Investing (Windows)
I am trying to work out several instances where one mutual fund was replaced with another in a brokerage account. My understanding is that such a change shouldn't change the cost basis. I tried entering these as Corporate Name Change transactions, but that still seems to set the cost basis of the new fund at the market value as of the date of the change, instead of reflecting the original cost basis for each lot of the original mutual fund. Please help me figure out what I'm supposed to do. Thanks!

Comments

  • Howard Roark
    Howard Roark Member ✭✭✭✭
    edited May 2018
    To have Quicken give the new security name the same historical cost basis as the old security name, use a Quicken Corporate Acquisition transaction (New Name acquires Old Name).
  • Unknown
    Unknown Member
    edited April 2017

    To have Quicken give the new security name the same historical cost basis as the old security name, use a Quicken Corporate Acquisition transaction (New Name acquires Old Name).

    In Q2012 there is the new option of Mutal Fund Conversion.  I used it for a couple of Vanguard funds that were converted, by Vanguard, to a new Admiral class.  The transactions, total new shares, and total fund value are all correct with the conversion, however, the Cost Basis is tremendously incorrect (one by $25K too low).  If I go back and do this instead as a Corporate Acquisition, will my cost basis be accurate?  Also, does anyone know if Q2013 has corrected this cost basis error that is in the Q2012 Mutual Fund Conversion option?
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited December 2016

    To have Quicken give the new security name the same historical cost basis as the old security name, use a Quicken Corporate Acquisition transaction (New Name acquires Old Name).

    fgaswolz:  I have not heard of any broad-based complaints about the MF Conversion routine.  My understanding was that it was the same as the Corporate Acquisition approach, except limited to one account at a time.  (The Corp Acq. applies the acquisition to all shares in all accounts.)  

    You can delete the Remove Shares & Add Shares transactions generated by your initial attempt with MF conversion, or you can restore a backup.  I suggest you have Quicken copy your data file, then validate that copy.  Then retry the MF conversion.  If there are still problems, you will need to closely review and work with your data file to identify underlying issues that may be causing the error.  

    HTH.
  • Unknown
    Unknown Member
    edited July 2016

    To have Quicken give the new security name the same historical cost basis as the old security name, use a Quicken Corporate Acquisition transaction (New Name acquires Old Name).

    Thank you for the input.  I already did delete the Remove Shares & Add Shares transactions and retried the MF conversion, but came up with the same cost basis inaccuracy.  I will re-look at the data and maybe try the Corporate Aquisition approach just to see if I get the same calculation error.  Frustrating, to be sure.  Thank you again for replying and giving advice.
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