need to change stock basis

jo18

Over 50% of the stock basis of all positions incorrect. FMV are correct and reconcile to brokerage acct.

Jim Harman gave me an answer back in April. Had some problems following his instructions. Is Jim's explanation still the best answer.

Frankx

Hi Jere,

So, if I understand you correctly, you have apparently gone through all you brokerage records and determined which lots have been sold and which are still unsold.  Therefore the object of this exercise is to get your Quicken history to match the broker's history.

If that is the case, step one is to remove from your Quicken account history any lots that have been sold (i.e. based on your broker's data were sold).  That will leave you with certain lots that you are still holding, but not all lots that you are still holding, or are "unsold".  Keep in mind that this process may require you to delete some transactions entirely and to modify other transactions.

Step two is to add back into Quicken all lots that were incorrectly removed by prior sales.  These should be entered - one by one - back into the account using the "original": purchase dates, number of shares, and costs of each purchase transaction based on your broker's information.

If the above steps are followed, you should end up with current records of your cost basis that match your broker's records.

Let me know if you have any followups.

Frankx

Frankx

Hi @jo18,

So the prior message thread is here.

You had two options at that time - which option did you choose?  I suspect it was option 2 if you are now having the same problem.  It that correct?

Frankx

Rich_M

Another reason you may have difficulty keeping your cost basis in agreement with your brokerage account, is if you own securities that return capital.  For example I own a REIT that returns capital as part of the quarterly dividend.  I get the breakdown the following year when I get my tax documents under Non Dividend Distributions.

Once I have this information I split the quarterly dividend payments for that year into two transactions, one for the dividend portion and one for the return of capital.

The return of capital portion reduces my cost basis bringing my investment records in line with my brokerage account.

NotACPA

Also, if you have ANY sale transactions for securities, did you inform your brokerage of what Tax Lots to sell?  Or, did you select the same tax lots that the brokerage selected?

Unless you gave instructions to the contrary, your brokerage almost certainly chose FIFO.  If you chose any other method, your Cost Basis would vary from the brokerages numbers.

q_lurker

jo18 said:

Over 50% of the stock basis of all positions incorrect. FMV are correct and reconcile to brokerage acct.

Jim Harman gave me an answer back in April. Had some problems following his instructions. Is Jim's explanation still the best answer.

Fundamentally, I'd say @Jim_Harman 's answer is still 'the best', but you haven't given us much to go on.  As suggested by others, there are a variety of ways the cost basis can be thrown off. 

To get a better answer, you might share where that existing cost basis information in your Quicken data came from -- current brokerage download, your manual entries, Buy transactions, Add shares transactions, other sources? 

Also, how far off are the 50% -- a few dollars, 50%, 100%   

Frankx

@jo18,

While you haven't answered my question above, it is more than likely that you chose option #2, because, while it may not have been apparent to you, the first option would have had you create accurate records while the second option would have "fixed" the then current problem but would not have resulted in accurate records.  And - while you may not realized it at the time - unless you disposed of the entire position at one time, you were bound to have future problems in Quicken.

All that being said, if you provide us with some additional details we'll do our best to help you.

Take care,

Frankx

jo18

Thanks to everyone for the quick response. My problems are user problems and not advice from Jim or others. Let me spend some more time with the possible solutions and I will report back with results.

To repeat problem, i have one account that the FMV reconciles exactly but the basis is off on approximately 61% of my security positions and approximately 55% of the FMV. The account is active with buying and selling. I have similar problem with two other accounts.

Again, thanks to all.

Jere

jo18

Have now reconciled the delta between cash basis in Quicken vs brokerage account. Goal is to correct basis by lot. Need a step by step explanation. Can anyone help?

Thanks,

Jere

Frankx

Hi Jere,

So, if I understand you correctly, you have apparently gone through all you brokerage records and determined which lots have been sold and which are still unsold.  Therefore the object of this exercise is to get your Quicken history to match the broker's history.

If that is the case, step one is to remove from your Quicken account history any lots that have been sold (i.e. based on your broker's data were sold).  That will leave you with certain lots that you are still holding, but not all lots that you are still holding, or are "unsold".  Keep in mind that this process may require you to delete some transactions entirely and to modify other transactions.

Step two is to add back into Quicken all lots that were incorrectly removed by prior sales.  These should be entered - one by one - back into the account using the "original": purchase dates, number of shares, and costs of each purchase transaction based on your broker's information.

If the above steps are followed, you should end up with current records of your cost basis that match your broker's records.

Let me know if you have any followups.

Frankx