How to convert a Fund to an ETF and preserve cost basis for the lots. QM 2019.

RCinNJ

I am going to convert some Vanguard Mutual Funds to their equivalent ETFs. What is the best way to handle this in QM 2019 and keep the cost basis for all the lots? 

Thank you for any suggestions/answers!

Quicken for Mac Premier 2019, 5.12.2

jr7107

If you did a full remove and add, surprise me that it would change the value. I just checked a Corp Acquisition I had done and all it did was automate a manual Remove/Add with the proper lots/dates/cost etc.

All else being equal (factoring in any share differences? was there a ratio to exchange?) it should be same cost basis and same gain/loss.

jr7107

My understanding there is no "Corporate Acquisition" transaction for QMac. Do you have the individual lot information?

RCinNJ

jr7107, you are correct, no "Corporate Acquisition" transaction for QMac. The conversion came into Quicken (as reported by Vanguard) as a Sell of the Fund and a Buy of the ETF. I can't see anything cleaner than keeping the sale and entering the Buy as lots using the original dates and purchase prices, and making notes in the Memo/Notes field. Not ideal but it worked. I believe this ended up inflating my QM reported gains since there was a "gain" on the Sale and I recreated the gain with the Purchase.

If there is a better way to do this I'm all ears.

jr7107

That's the thing with Corp Acquisitions it does that for you. Thinking out loud because I don't know all of the transactions available in QMac. Was this a taxable transaction or a merger/acquisition and did it occur in a taxable account? Or was it in a tax sheltered account?

jr7107

One large "Remove" of shares then "Add" of shares on transaction date, with the add of shares and proper cost basis on the acquired date. If QMac supports the Remove and Add, that's basically what the Corp Acquisition transaction does.

RCinNJ

jr7107 thanks for your responses.

"Was this a taxable transaction or a merger/acquisition and did it occur in a taxable account?" It is not a taxable transaction. Vanguard treats it as a share class exchange (same as it does going from Investor to Admiral class). So it doesn't matter that it's in a taxable account.

"If QMac supports the Remove and Add, that's basically what the Corp Acquisition transaction does." I actually tried remove and add first. At least the way I did it, using Remove Shares and Add Shares threw off the portfolio value, so I looked for what worked. Maybe this is a better way to do it and I did this wrong, or maybe this is another way that QM is not like QW? 

jr7107

If you did a full remove and add, surprise me that it would change the value. I just checked a Corp Acquisition I had done and all it did was automate a manual Remove/Add with the proper lots/dates/cost etc.

All else being equal (factoring in any share differences? was there a ratio to exchange?) it should be same cost basis and same gain/loss.