How to fix "Remove Shares" transactions that don't adjust the cost basis?

jledwards0117

I created an account for my 401K (Empower Retirement) and imported a QFX file to bring in historical data. Most of it is correct. However, I foiund some Remove Shares transactions from July 2017 (as the result of a reallocation of assets) that reduce the share count but do not reduce the cost basis for those shares.

I've verified that the original lots have the correct cost, and I've edited the Remove Shares to manually assign the lots. No change. I deleted one of the Remove Shares transactions, which restored the original share count, then re-created the transaction from scratch, with the same results -- share count adjusted, cost basis not adjusted.

Is this a known issue with Quicken Investing (Windows subscription)? Am I overlooking something? I can't quite figure out where to go from here to correct this problem.

Jim

Sherlock

The Removed Shares should reduce the total cost basis of the security holding in the account by the cost basis of the shares removed.  If the total cost basis of the security holding in the account is not reduced by the Removed Shares, the implication is the shares removed had no cost basis.

q_lurker

Let’s be sure about terms. In Quicken’s design, Cost Basis should be reduced by a Remove Shares transaction. Amount Invested should not be reduced. Cost basis and Amount invested are not the same thing. 

Please confirm which you are asking about. 

jledwards0117

q_lurker,
Example: I display Holdings. On 7/9/2017 it shows, correctly, that I have 5000 shares of a fund valued at $87,000, with cost basis of $80,000.

On 7/10, I rebalance account, removing 1/2 of the shares. Holdings for 7/10 and following dates show I now have 2500 shares valued at approximately $43,500, with cost basis of $80,000.

The only transaction for this fund on 7/10 or the surrounding days is the Remove Shares transaction. As previously noted, I've verified that the removed lots all have a cost, which totals approximately half of the cost basis.

The Remove Shares transaction removes the shares but does not adjust the cost basis as it should.

Ideas?
Jim

jledwards0117

Forgot to add:
In Holdings, after the Remove Shares transaction, the total cost basis for the security shows $80K, as described, but if you click in the security to show the remaining lots, they are all correct and their total cost basis sums to about $39K.

Jim

Sherlock

I suggest you save a data file backup (press Ctrl + B) and then, open the investment register, press Ctrl + Shift + Z, and select OK.

jledwards0117

Thanks, Sherlock. I did as you specified. It ran the process, but did not change anything. I also went to File Operations and ran the "Recalculate Investing Lots" process. It completed successfully, but did not change the outcome.

It is extremely odd that these individual transactions have (in my opionion) somehow corrupted the file and cannot be fixed. As I mentioned in the original post, even deleting one of the transactions and then entering it manually did not resolve the problem.

Is this where I reach out to Quicken Support (assuming there is support for the individual)?

Jim

jledwards0117

I looked on the Quicken Support page and was able to start a chat session. The agent has had me start a Validation of the file, to be followed by a Super Validate operation. We'll see if it works.

Rocket J Squirrel

Don’t be alarmed if the validations show Quicken is “not responding.” This is common, and the validation will eventually finish.

jledwards0117

Well, the validation processes did not fix the issue. I had to get on a chat with a second agent. Her position was that the Remove Shares tramsaction should not adjust the cost basis. The solution is for me to go through all of the years of transactions downloaded from my 401K and change the Remove Shares to Sells, and all of the Add Shares to Buys.

Lots of help ...
Jim

jledwards0117

FWIW, I've come to the conclusion that Remove Shares transactions will NOT adjust the Cost Basis of the security for which they are removed. Tried it on several investing accounts and worked the same on all of them. I fixed my issue by converting all of the Remove Shares transactions to Sell transactions, with the proceeds going back to the same account. This removes the shares, adjusts Cost Basis for the removed shares, and has no effect on Cash.

Jim