Lot Cost Basis Calculating Incorrectly

Hi there, looking for a little bit of help on a head scratcher.

I purchased a lot of XUS on 6/19/2018 - 123 shares @ 45.94 +9.99 CAD transactions for a total of 5660.61 CAD. Fast forward to 10/1/2019 where i sold 114 shares of XUS. When I look at the cost basis in quicken I should see the remaining 9 shares of XUS on October 1, 2019 have a adjusted cost basis of 9 shares @ 45.94 per share for a total of $413.46 CAD for the lot. However when quicken is showing me that the cost basis for the remaining 9 shares at $45.94 per share is $415.39.

I have tried to delete and re-enter both transactions to see if the cost basis for that particular lot would correct itself. I have had no luck.

Really looking forward to some help on this.

Answers

  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    Hi @Plut,

    I believe that the difference is primarily related to the "transactions fee" (which is typically part of the cost of a purchase transaction).  My calculation - which includes the transactions fee - produces a remaining cost of $46.02 per share, totaling $414.19 for the remaining 9 shares.  While not exactly what Quicken apparently shows, it is closer.   Here's my calculation:

    # of Shares Price/share Fee/share Total Cost/sh Total Cost
    Purchase 123 45.94 0.08 46.02 5660.61
    Sale -114       -5246.42
    Remaining Cost 9 46.02 414.19


    Let me know if you have any followups.

    Frankx


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  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    Is that CAD 9.99 commission, or something similar?  That amount is also part of your cost basis, so the total per using basis of the original purchase is $5660.61/123, or $46.0212... which for your remaining 9 shs should show a total of $414.19.
    Unless you've omitted other XUS transactions/costs from this description, I don't see how to get to $415.39
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  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    Hi again @Plut

    I have one follow-up comment - my above post is actually based on US tax law.  It could be possible that Canadian tax law calls for the expensing (and maybe even currently deducting) of this type of fee.  If that is the case, then your expected result makes sense. 

    Frankx


                           Quicken H&B-Subscription - Windows 10 Home - Ver. 2004
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  • Plut
    Plut Member ✭✭
    Hi @Frankx / @NotACPA Thank you for both of your replies. Your book value reduction methodology makes sense. The $9.99 CAD is exactly that, a transaction/commission fee that the bank charges. I have attached a snapshot of the transactions and the cost basis as of 10/1/2019 when the 114 shares were sold.

    Please give it a look and let me know if you see anything out of place. Again the focus is really on the purchase and sale of the 114 shares thats throwing me off. Is there a way I can manually adjust the book value to match my bank statements. I feel like if I don't get this right now my future book keeping will always be off.

    Any suggestions to make this match?
  • Plut
    Plut Member ✭✭
    @Frankx @NotACPA - I did figure it out....I had used a Return of Capital transaction for a DRIP program which was incorrect later in 2019 which somehow was impacting prior adjusted cost basis. Apologies and thank you for your notes. You taught me something about my adjusted cost basis calculations.
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