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Does Fidelity compute different bases?

I sold 240 shares of a security I had previously added (I added a total of 350 shares) to my Fidelity Account that I track in Quicken for approx $26,000. I had held the security for several years. My total basis for all 350 shares was approx. $8,500. Quicken computed a revised basis after the sale of approx $2,670 for my remaining 110 shares. When I received my Fidelity statement, it showed a basis of approx $6,400 for the remaining shares.

Does anyone know if and/or how Fidelity does this?

Comments

  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    The cost basis of a lot is established when the shares are acquired.  With the limited details you have provided, it is possible the remaining shares were purchased at a cost $6400.  It appears Quicken may have calculated an average cost basis, if this is a mutual fund, or the acquisition may have been entered as a single lot.
  • Jeffrey Kirk
    Jeffrey Kirk Member ✭✭
    Thanks Sherlock. Is there a way to edit my Quicken transactions to reflect how Fidelity handled this sale?
    Thanks again.
  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    Thanks Sherlock. Is there a way to edit my Quicken transactions to reflect how Fidelity handled this sale?
    Thanks again.
    Yes.  But to be accurate, you should enter the appropriate lot information.

    You should be able to obtain Fidelity's current lot details for the account by selecting the security on the Positions tab.  If these are accurate, there should be an Added or Bought transaction for each lot in Quicken.

    If you have the purchase details of the lots you've sold, you should use those facts to establish an accurate record.  If you are just going to fake it, you could pretend that the 240 shares you sold was from one long and/or short lot and distribute the cost basis appropriately to produce the desired result.
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    Also note, that if your SALE instructions to Fidelity don't include EXACT "lots to sell" transactions, Fidelity will execute the SALE using FIFO for the lot selection.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Jeffrey Kirk
    Jeffrey Kirk Member ✭✭
    In addition, I transferred 100 shares of a security eith no cost basis included. A day after I trasnsferred the shares, Fidelity sold them. How do I find out how Fidelity calculated the basis for those shares (at the end of the month, Oct 2018, I did not own any shares of that security).
    Thanks.
  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    To determine the cost basis Fidelity assigned, I suggest you review the Form 1099-B.
This discussion has been closed.