Capital gains for one stock does not calculate correctly. How do I fix the problem? (edited)

jliston7

In investing view of my portfolio of stocks the gain/loss value for one of the stocks is incorrect.
How do I fix it?

Boatnmaniac

Well, if I were you I'd be happy with a gain of $17546.78 and forget about it! 

Seriously, though, such a large delta in the gain tells me the issue is likely due to a cost basis issue, as was indicated above by NotAPCA above, so some trouble shooting needs be done. 

I would start with this...after the stock market is closed: 

1)  Run OSU to download the latest stock price.  What does Quicken show for Number of Shares, Market Value, Cost Basis and Gain/Loss for this stock?

2)  Log in to your on-line brokerage account.  What does your brokerage show for Number of Shares, Market Value, Cost Basis and Gain/Loss for this stock?

With this information we can confirm whether or not this issue is a cost basis issue and then can decide what the next steps should be.  (You don't need to tell us all the specific numbers.  We just need to know if your brokerage information and your Quicken information is the same and, if not, where is it different?)

NotACPA

Elaborate.  How did you determine that it's wrong?  What did you compare Q's calculation

Did you sell ALL of this stock?  Or only part?  If part, did you select the same tax lots for the sale as your broker selected.  Unless you gave specific written instructions to the contrary, the brokerage almost certainly selected the lots using FIFO.

If you selected anything else, your cost basis (and therefore the CapGains) are almost certain to differ.

Boatnmaniac

"Gain/Loss" value and "Capital Gains" are two separate things.

Gain/Loss = Current Market Value Of Current Holdings - Cost Basis Of Current Holdings.  Cost Basis includes purchase cost + any fees, commissions and front-end loads incurred in making that purchase + the value of reinvested dividends + reinvested capital gains distributions (not to be confused with capital gains).  It does not include any data for shares that have been sold.  So, Gain/Loss in the investing view of your portfolio is not as straightforward as it might seem.

Capital Gains = Sale Value Of Shares Sold - Cost Basis Of Those Sold Shares.  Sale Value can be reduced by the cost of any fees, commissions and rear-end loads incurred in the sale of the security.  It is how a Realized Gain/Loss from the sale of a security is classified for tax purposes.  Capital Gains are reported in the Capital Gains report and will not show up in the investing view of your portfolio.

That all being said, I assume you are talking about Gain/Loss, not Capital Gains.  Why do you think Quicken is calculating Gain/Loss incorrectly? 

jliston7

You are correct I am talking about the current gain/loss of just one of my portfolio stocks. For example,it shows a gain of 17546.78 & should be 1062.48.
My purchase input data is correct & the down loaded data for current stock value is correct. I would like to know how I can see the Quicken input data to the gain/loss calculation.

q_lurker

The transactions that should affect cost basis would be Buys, Sells, Reinvestments, Adds, Removes, Short Sells, Cover Shorts, and RtrnCaps.  Placeholders (Adjust Share Balance) may also come into play.  Other than a transaction list whcih is indirect, I don't know of a way to "see the Quicken input data".

In a portfolio view (Ctrl-U) when grouped by account, you can expand the presentation of each security to show the individual lots (click the + next to the security).  In a all-is-right world, the basis of the lots will add to the basis of the complete holding.  But glitches can develop.  

In trying to identify such glitches, I will usually vary the As of date for the portfolio view to see when things might have gone haywire.  It may then be a case of deleting and re-entering select transactions.  

Boatnmaniac

Well, if I were you I'd be happy with a gain of $17546.78 and forget about it! 

Seriously, though, such a large delta in the gain tells me the issue is likely due to a cost basis issue, as was indicated above by NotAPCA above, so some trouble shooting needs be done. 

I would start with this...after the stock market is closed: 

1)  Run OSU to download the latest stock price.  What does Quicken show for Number of Shares, Market Value, Cost Basis and Gain/Loss for this stock?

2)  Log in to your on-line brokerage account.  What does your brokerage show for Number of Shares, Market Value, Cost Basis and Gain/Loss for this stock?

With this information we can confirm whether or not this issue is a cost basis issue and then can decide what the next steps should be.  (You don't need to tell us all the specific numbers.  We just need to know if your brokerage information and your Quicken information is the same and, if not, where is it different?)

jliston7

I finally solved the problem. I had 150 shares in Quicken & my broker account had 100 shares. My Bo Bo Thanks for all the help.

Frankx

@jliston7,

You know what they say - Easy Come Easy Go!!

Boatnmaniac

I'm glad you found out what the problem is.  A shares discrepancy will most certainly cause a cost basis and gain/loss issue.  (Although I still think you should have taken that $17 grand gain and run! )

BTW, there are two ways that you can check from within Quicken to see if your online shares balance and your Quicken shares balance are in agreement with each other.  This only works if your investment company is set up for online services.: 

1)  Online Center (under Tools):  Select your FI from the drop-down menu.  Then click on the "Holdings" tab and then click on "Compare to Portfolio".

2)  From your investment account register:  Click on the gear icon at the top right of your register screen and then click on "Reconcile Shares".

Both of these will quickly let you know if everything is in agreement or if there is a shares or security discrepancy.  Any time you have new security and/or share transactions entered into your register it would a good idea to confirm that your FI and Quicken show the same holdings.