Reclassify / converting mutual funds - cost basis issues

Mintjohn266
Mintjohn266 Member ✭✭
edited April 23 in Investing (Mac)
Certain mutual were reclassified -- to illustrate, y shares of fund 'vxxxN' were converted to y shares of fund 'vxxxU'. The result is a different fee structure, allowed because of a higher level investment in the fund. The value of the old shares was slightly different from the value of the new shares. Fine. I can enter 'remove shares' and 'add shares'. The values are automatically updated when I am online. That way of entering these transactions, however, overlooks a key issue: the original cost basis, which does not carry to the new class. Also, if I input the original cost basis when adding the replacement class, I change the investment date, such that what might have been a long-term sale may show up in Quicken as a short-term sale.

How else to input such a switch in a way that addresses those two issues?

Best Answers

  • Quicken_Tyka
    Quicken_Tyka Alumni ✭✭✭✭
    Accepted Answer
    Hello @Mintjohn266

    Thank you for taking the time to visit the Community to report this issue although, I apologize that you have not received a response.

    Currently, Quicken for Mac does not support the necessary transaction types to account for mergers or acquisitions to preserve the cost basis.

    There is an ongoing Idea thread, here that you may vote on and review. I apologize for not having a solution to this issue at this time.

    -Quicken Tyka

    ~~~***~~~
  • jacobs
    jacobs SuperUser, Mac Beta Beta
    Accepted Answer
    @Mintjohn266  This may not be much consolation, but depending on how your mutual funds are set up, Quicken may not be able to provide exact cost basis and gain information anyway. Many mutual funds use Average Cost Basis, but Quicken Mac at this time only offers LIFO and FIFO. My mutual funds all use ACB, so I don't rely on Quicken's calculation of basis or gains; I use the information from my brokerage for tax purposes. So for reclassified funds, I simply do Remove and Add shares transactions to get the holdings correct.
    Quicken Mac Subscription • Quicken user since 1993

Answers

  • Quicken_Tyka
    Quicken_Tyka Alumni ✭✭✭✭
    Accepted Answer
    Hello @Mintjohn266

    Thank you for taking the time to visit the Community to report this issue although, I apologize that you have not received a response.

    Currently, Quicken for Mac does not support the necessary transaction types to account for mergers or acquisitions to preserve the cost basis.

    There is an ongoing Idea thread, here that you may vote on and review. I apologize for not having a solution to this issue at this time.

    -Quicken Tyka

    ~~~***~~~
  • jacobs
    jacobs SuperUser, Mac Beta Beta
    Accepted Answer
    @Mintjohn266  This may not be much consolation, but depending on how your mutual funds are set up, Quicken may not be able to provide exact cost basis and gain information anyway. Many mutual funds use Average Cost Basis, but Quicken Mac at this time only offers LIFO and FIFO. My mutual funds all use ACB, so I don't rely on Quicken's calculation of basis or gains; I use the information from my brokerage for tax purposes. So for reclassified funds, I simply do Remove and Add shares transactions to get the holdings correct.
    Quicken Mac Subscription • Quicken user since 1993
  • Mintjohn266
    Mintjohn266 Member ✭✭
    Thanks to Quicken_Tyka and jacobs for your prompt and thoughtful replies.
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