How does one edit cost basis of a security in the Canadian version?

clancysfriend

I am currently using the latest version of Quicken Canada (subscription). One of my holdings (Choice Properties) has issued non cash distributions in 2019 and 2020 and these transactions have the effect of increasing the cost basis of the security. The US version of Quicken appears to have an option to edit cost basis but as far as I can tell, the Canadian version does not. Also, while there is a transaction category for events like return of capital which leads to an automatic adjustment of the cost basis, I cannot see a category for non cash or phantom distributions. Is there a workaround of some sort or am I missing something? Quicken support suggested adjusting the initial purchase price but this would distort the integrity of the data.

q_lurker

I suggest you try a RtrnCapX transaction with a negative value (to increase the cost basis as opposed to the normal decrease process) and a Transfer Account indicated as the account holding the shares and into which you are entering the transaction.  That self-referencing transaction will not change the cash in the account.  

NotACPA

Tell us more about that "non cash distribution".  Did you receive additional shares of your previously held stock?  Stock in another company?  What?

How did you record these distributions in your investment account?

Have you sold ANY of this stock in the past?

Lastly, what EXACT QCan product are you running ... and what BUILD of that product?  This info is available at HELP, About Quicken

clancysfriend

The Special Distribution in 2019 was paid solely by the issuance of additional trust units that have a fair market value equal to the dollar amount of the Special Distribution and which was based on the closing price of the trust units on December 31, 2019. Immediately after the payment of the Special Distribution, the issued and outstanding trust units were consolidated such that the aggregate number of issued and outstanding trust units were the same as immediately before the Special Distribution. We were advised that the effect of this transaction would be an increase in the adjusted cost base of the security. Other than this, there was no need to make adjustments to the holding. I am using QCan 2020 Version R28.15 Build 27.1.28.15. No units have been sold.

NotACPA

I'm struggling to understand this.  X # of units + Y # of units distributed = X # of units???

And, can you try explaining it yourself, instead of pulling a quote from the company?

Also, spaces and paragraph breaks make messages MUCH easier to follow.

q_lurker

I suggest you try a RtrnCapX transaction with a negative value (to increase the cost basis as opposed to the normal decrease process) and a Transfer Account indicated as the account holding the shares and into which you are entering the transaction.  That self-referencing transaction will not change the cash in the account.  

clancysfriend

Unfortunately, I am not able to explain the complexity of the transaction in any more detail that what is contained in the company press release.

In any event, the outcome, however achieved , is no change in units held.

I am able to determine the adjustment to the cost basis (the amount of the non-cash distribution times the units held added to the previous cost base). I am simply left with the need to make the change to my Quicken records if this is possible.

clancysfriend

Negative Return of Capital entry is the answer. Many thanks.

brnsdv

After years of trying different ways, the best way is to handle cost adjustments so that you have record of the txns that actually make the changes is to ReinvLg for .00001 shares at the amount of the adjustment you want. Then do a Removed (shares) for the same security of .00001 . Now you have the right number of shares and the right cost base and no need for a phoney transfer account. Easy.

clancysfriend

Where do I find the transaction "ReinvLg"? It does not appear in my existing transaction options.

rossinab

I agree with Member brnsdv, who posted on February 9.

Jim_Harman

@clancysfriend

ReinvLg is the Action Quicken uses for a long term capital gain reinvestment.

To enter it, go to the investing account and click on Enter Transactions.
From the drop-down list at the top, select Reinvest - Income reinvested.
Enter your data next to Long-term cap gain. 

lucmajor

I enter the data the whole year as per the statement and for Choice Properties, it is usually reported as dividend. When I receive my T3, I then define how much was distributed capital gain versus shadow (or cashless) capital gain. I then enter negative dividend and enter capital gain long, interest and negative Return Of capital that will properly reflect in the tax report and also properly adjust my cost basis and also not impact my account balance. See the attached picture for my 2019 end of year transaction related to the received T3. It takes into account that the last distribution reported in the T3 was partly paid only. Make sure to split that last line between what was paid and not by looking at your broker January statement. Complicated but all then adds up and is properly reported in quicken.