Why is Sale of $1 Fidelity Premium MM Account Showing up as Capital Gain?

Ken45140
Ken45140 Member ✭✭
edited December 2019 in Investing (Windows)
I have two MM accounts in my taxable account at Fidelity. One is "Regular" while other is "Premium" which pays a slightly higher interest rate. When I withdraw cash from Regular Account (say write a check) and there are insufficient funds in that account, Fidelity automatically sells Premium Cash to put in Regular Cash account. This shows up as a "Sold" transaction. However, these "sold" transactions accumulate as Capital Gains transactions (Category = "_RlzdGain"), even though sale is shares at $1.00, same as purchase price. Wondering how to handle this so these transactions do not show up as Capital Gains (seemingly calculated incorrectly also), and which throw off the Tax Related section. (Related issue: can not find category "_RlzdGain" in Category list so do not know if there are some settings associated with that Category. Where is it?)
Thanks,
Ken

Note: I just displayed Capital Gains Report and all sales (transactions) of the Premium MM Account show zero ($0) capital gains. So, it appears the tax estimator section has the error or incomplete programming. Sound right?

Best Answer

  • Ken45140
    Ken45140 Member ✭✭
    Accepted Answer
    Thanks for the responses. I am reading the Tax Planner lists wrong. The Cost Basis = the Market Value and the Gain = 0, as it should be. I was misreading the Capital Gain source...all fixed now. Thanks for the suggestion about showing hidden categories. That worked.
    Ken

Answers

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    Perhaps when the Premium shares were purchased the share price was 0. Then the whole amount of any sales would be a capital gain.

    The _RlzdGain may be hidden in your Category list. Check the Show hidden categories box at the bottom of the list to see hidden categories. 
    QWin Premier subscription
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Within that Account when you click on Holdings button, what's the cost basis shown for the Premium MM?  Is it $0?
  • Ken45140
    Ken45140 Member ✭✭
    Accepted Answer
    Thanks for the responses. I am reading the Tax Planner lists wrong. The Cost Basis = the Market Value and the Gain = 0, as it should be. I was misreading the Capital Gain source...all fixed now. Thanks for the suggestion about showing hidden categories. That worked.
    Ken
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    For cap gain reports, I usually customize to exclude security type of money market so that I do not see all those $0 gain/loss lines. 
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