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How can I get 1 security to reflect 2 different cost basis "methods" in 2 different accounts

whawk
whawk Member ✭✭
edited April 2020 in Investing (Windows)
I have 2 brokerage accounts. 1 is a retirement account (using Avg cost as the cost basis) and 1 account is a Non-retirement (using MINTAX as the cost basis). Both accounts have the same security. Is there any way to set the security to have 2 different cost basis's?

Best Answers

  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    edited April 2020 Accepted Answer
    whawk said:
    I just tried creating a new security name with the same ticker symbol...........It won't let me do that. What now?
    To create a new mutual fund security, press Ctrl + Y, Alt + A, select Click here, enter the new security name in the Name: field, select Mutual Fund in the Security type: pull-down menu, Next, and Done.
    To set the ticker symbol, right click on the new security, select Edit, enter the ticker symbol in the Symbol: field, and select OK and OK.

    You will need reset the security used in the transactions one of the accounts.  If the transactions are too numerous, you may want to consider using the Mutual Fund Conversion wizard.

    If you import transactions from a financial institution, you should edit the original security and uncheck Matched with online security to enable the securities to be remapped for each account on import.

Answers

  • whawk
    whawk Member ✭✭
    What does that mean? If the ticker symbol is that same for both accounts, how can I make them distinct?
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    I don't understand this whole discussion.
    Cost Basis is established when you either buy or sell a security (or some corporate action like a split).
    If you buy the same security in 2 different accounts, that security will have the price for each of those respective purchases minus any sales of that security in that account.
    I own Wells Fargo stock in both my Rollover IRA and in my taxable portfolio.  The cost basis for those respective securities is RADICALLY different on both a per share basis and on a total position basis because I've bought and sold from those accounts at different times.
    Both accounts have the security name as "Wells Fargo & Co." and both have the ticker symbol WFC.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Ps56k2
    Ps56k2 SuperUser ✭✭✭✭✭
    NotACPA said:
    I own Wells Fargo stock in both my Rollover IRA and in my taxable portfolio.  The cost basis for those respective securities is RADICALLY different on both a per share basis and on a total position basis because I've bought and sold from those accounts at different times.
    Both accounts have the security name as "Wells Fargo & Co." and both have the ticker symbol WFC.
    Interesting topic.....
    but the single Security Detail screen would only show a single "Cost Basis",
    and yet each Account Detail would should it's own cost basis for each holding...

    Quicken 2020 Deluxe - Subscription - Windows 10
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    edited April 2020
    The Security Detail screen shows the sum of the positions.
    That's why I prefer the Portfolio screen, grouped by Account.
    And re: the Cost Basis per share  (according to Fidelity Investments) in the Taxable Portfolio it's $8.16/sh while in the Rollover IRA it's $3.52/sh.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    NotACPA said:
    I don't understand this whole discussion.
    Cost Basis is established when you either buy or sell a security (or some corporate action like a split).
    If you buy the same security in 2 different accounts, that security will have the price for each of those respective purchases minus any sales of that security in that account.
    I own Wells Fargo stock in both my Rollover IRA and in my taxable portfolio.  The cost basis for those respective securities is RADICALLY different on both a per share basis and on a total position basis because I've bought and sold from those accounts at different times.
    Both accounts have the security name as "Wells Fargo & Co." and both have the ticker symbol WFC.
    @NotACPA  I'm not sure what it is you do not understand.

    Suppose you have one account at a brokerage that is using the average cost basis method and another account at a brokerage that is not using the average cost basis method for a mutual fund holding.  The holding in the former account should be set to Use Average Cost to properly track the performance as reported by the brokerage.

    If you purchased 1 share for $1 and 1 share for $3, and sold 1 share for $2, what is the remaining cost basis?   Using the average cost basis method, the answer is $2.  Otherwise, the answer is either $1 or $3 depending on which lot was sold.

    More information at: https://www.investopedia.com/terms/a/averagecostbasismethod.asp
  • whawk
    whawk Member ✭✭
    Sherlock said: I suggest you use distinct mutual fund securities.

    Thanks Sherlock...I'm getting closer to an answer. In order to make the security distinct, I tried changing the name of the security in 1 account to a different name. But it also changes the name in the other account. So do I have to create a new security with a new name (but still using the same ticker), and then change all the transactions in the appropriate account to the new security?

    There are a lot of transactions in that account, which is why I'm asking.
  • whawk
    whawk Member ✭✭
    I just tried creating a new security name with the same ticker symbol...........It won't let me do that. What now?
  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    edited April 2020 Accepted Answer
    whawk said:
    I just tried creating a new security name with the same ticker symbol...........It won't let me do that. What now?
    To create a new mutual fund security, press Ctrl + Y, Alt + A, select Click here, enter the new security name in the Name: field, select Mutual Fund in the Security type: pull-down menu, Next, and Done.
    To set the ticker symbol, right click on the new security, select Edit, enter the ticker symbol in the Symbol: field, and select OK and OK.

    You will need reset the security used in the transactions one of the accounts.  If the transactions are too numerous, you may want to consider using the Mutual Fund Conversion wizard.

    If you import transactions from a financial institution, you should edit the original security and uncheck Matched with online security to enable the securities to be remapped for each account on import.
  • whawk
    whawk Member ✭✭
    Wow.......That worked. It's kind of a back door. Thanks
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    edited April 2020
    Re-read the OP's original last sentence.  The same security in 2 different accounts will almost ALWAYS have differing cost bases .  The differing tax treatment will only accentuate this difference, as your example demonstrated.
    There's no need for 2 different securities.

    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Ps56k2
    Ps56k2 SuperUser ✭✭✭✭✭
    NotACPA said:
    The Security Detail screen shows the sum of the positions.
    That's why I prefer the Portfolio screen, grouped by Account.
    tnx - just looked at the ..... --> Invest --> Portfolio --> Holdings (group by account)
    and sorted by Gain/Loss -
    and yeah, it is a good picture of what is going on - just printed the page and will review -
    I've been trying to decide on a couple of my really down stocks..... 30% to 50%
    Boeing - American Eagle - LNG -

    Quicken 2020 Deluxe - Subscription - Windows 10
  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    NotACPA said:
    Re-read the OP's original last sentence.  The same security in 2 different accounts will almost ALWAYS have differing cost bases .  The differing tax treatment will only accentuate this difference, as your example demonstrated.
    There's no need for 2 different securities.

    @NotACPA,

    In context, the OP is referring to differing cost basis methods.
This discussion has been closed.