Mutual Fund Conversions - Basis is incorrect

dwittwer

When entering mutual fund conversions (class change,) the shares and new security are correct. Removed appears once in the register, Added appears for each lot, however the basis for each lot is the amount of the total basis in that security. Deleted original attempt a few months ago and re-entered with current version, still a bug. Can use stock for stock acquisition to accomplish the same result, but Quicken should fix the bug.

q_lurker

What version and release of Quicken are you using.  That was a bug but I find the subscription R30.14 (not quite the latest) to be getting the conversion right.  

dwittwer

I’m using R30.21

q_lurker

Just did it again with R30.21.  Still worked correctly for me.  

My test case is relatively simple - 4 lots of 100 shares each bought in 2020 and a conversion also done in 2020.  Each time 100 shares became 100.135 shares and the original cost basis carried over.  Straight brokerage account, though I can't imagine that would make a difference.

Any more info you can offer?

dwittwer

Mine was an initial purchase in 2016, then three reinvested dividends, relatively small in 2016, 2017 and 2018. Conversion in 2020.

Q_Ace

I have found the same problem with R30.21. In my case, the quantity of shares between the two mutual funds is different. Approximately 3000 shares for the MF that was removed and about 700 shares for the MF that was added. For each of the added entries the quantity * the share price = the total price for the 3000 shares that were removed. This was done by artificially inflating the share price for each entry that was "added-in".

Q_Ace

I should also state that I have done the mutual fund conversion in the past and have seen it work when the share quantities are 1:1. The other thing that I did differently this time is to click on the "Enter Transactions" button at the top left of the account transactions page.

Q_Ace

I tried this again with a different mutual fund with a ratio that was not 1:1 and it worked fine. One other thing that I thought of that happened the time that the conversion did not work is that I had accidently entered the wrong date for the conversion. The date I used was approximately 8 months earlier than the date of the last entry for the mutual fund being converted.

q_lurker

@Q_Ace

The other thing that I did differently this time is to click on the "Enter Transactions" button at the top left of the account transactions page.

The Enter Transactions button is the only (practical) way I know of to get to the MF conversion.  (I suppose you could start a different line-item entry, choose edit to get to the window, and then get to MF Conversion, but that is pretty convoluted.)  Did you have some other way to get there?

My test case was not a 1:1 conversion.

I can't imagine the timing of the transactions would be a factor (gap between last acquisition and conversion), though converting BEFORE the intended time would exclude later acquisitions from the conversion.  That would clearly mess up the data (wrong computed share ratio), but I don't see that causing the type of error being addressed here.  (Cost basis / lot = total cost basis of holding)

Techer90

I have version R31.12 and it did not calculate correctly. Mine was not a 1:1 conversion. It appears that the cost basis for each lot is the cost basis for the all the lots.