What Is Best Way to Retain Cost Basis When Moving Shares

Question

What is the best way to move shares of stock from one account to another and retain the cost basis information on a specific lot basis? I tested using the "Transfer Shares Between Accounts" traansaction and used Lot Identification. It did seem to move each lot except the transaction date became the "move date" versus the actual purchase date. And since I already had some of the same stock in the receiving account, the newly added lots were not in date order with the existing lots. Would it be better to move the purchase transactions versus transferring the shares?

Scott M · Answer

Thanks for your input I have spent more time analyzing the results of the "move shares" using specify lots, and here is what I find: the moved lots do show the correct date acquired when you edit them; and the transaction date of the moved lots is the dae moved. However, when I look at the individual lots in the portfolio view and in the "select lots to sell" dialogue box, the moved lots are sorted by date moved versus date acquired. Therefore the moved lots are not in date acquired order with the shares that were purchased in the account. Instead they come after. So in the future when I go to sell shares if I want to do Fifo for example, I must remember to go select the lots individually because the moved lots are not in date acquired order but rather date added. Does that make sense or do you think I am missing something? Thanks again.

fordtufff · Answer

Not the OP, but this worked for me! The original transactions dates were maintained in the holdings list with all the lots in order and any report I generated seemed to be based on the transaction date, not the account transfer date. I too had several stocks that had already been downloaded into the new account before I "moved shares between accounts". After figuring out that was why my share balances were coming up incorrect, I deleted the downloaded shares, and everything is good.

Jim_Harman · Answer

Moving the transactions is not a good solution to your problem. For one thing that is not what happened in real life. Also if you move a buy or sell transaction from one account to another, the cash positions in both accounts will be wrong.

The shares moved between accounts operation is the correct way to do this.