Cost Basis Problems Transferring Shares Between Accounts

DAGbike
DAGbike Member ✭✭
When I transfer shares from one account to another, I select 'identify lots'. These are highly appreciated shares. Whether I select 'maximize gain' or 'minimize gain', the shares selected show a loss. In the gifting account, the cost basis of the shares shows correctly. The shares were recently converted from one share class to another in the gifting account. Average costing is not checked for the new shares. The share class upgrade shows the correct cost basis before and after the upgrade.

Best Answers

  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited December 2021 Answer ✓
    My 10-minute review and observations:

    When using the Enter Transactions / Shares Transferred selection
    And specifying lots to be transferred,
    • The Gain/Loss presented on that Specify Lots screen is inaccurate or misleading  It is as @Rocket J Squirrel observed computed as a 'sale' at $0.  That error has no further ramifications that I see.  The correct shares get removed from the sending account and the correct shares get added to the receiving account with the correct cost basis and acquisition dates.  I only did this for a user specified set of shares to transfer, but I don't see why Min Gain, or Max Gain would be any different.
    • The shares removed from the sending account will not appear in the Tax-Capital Gains Report so no gain/loss is reflected there.  That behavior is different than if the user manually enters a Removed Shares transactions; for a manual Remove Shares, a line is generated in the Capital Gains report showing $0 gain/loss as if the shares were sold at cost.  (I find that difference irritation, but I'll pick my battles.)
    • I did also find that if you err in entering the Shares Transferred by not including the receiving account, the specify lots gets reset to FIFO without notice. 
    Sorry for the shorter original post.  Wrong button at wrong time.
  • DAGbike
    DAGbike Member ✭✭
    Answer ✓
    Thank you

Answers

  • DAGbike
    DAGbike Member ✭✭
    As I review it carefully, when I select the shares it shows a large loss where there is a gain. Once the shares are transferred, they are in the new account with the correct cost basis. Maybe I don't need to worry about it?
  • Rocket J Squirrel
    Rocket J Squirrel SuperUser ✭✭✭✭✭
    edited December 2021
    I see this also. Looks like you've found a bug in the "Specify Lots" dialog.
    If you have a minute, report this via Help > Report a Problem. I will also.
    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win10 Pro.
  • Rocket J Squirrel
    Rocket J Squirrel SuperUser ✭✭✭✭✭
    Transferring shares should not show a gain or loss, since you're not selling them. It appears Quicken is using the same Specify Lots dialog as a Sell would use but using $0 as the current price.
    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win10 Pro.
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited December 2021 Answer ✓
    My 10-minute review and observations:

    When using the Enter Transactions / Shares Transferred selection
    And specifying lots to be transferred,
    • The Gain/Loss presented on that Specify Lots screen is inaccurate or misleading  It is as @Rocket J Squirrel observed computed as a 'sale' at $0.  That error has no further ramifications that I see.  The correct shares get removed from the sending account and the correct shares get added to the receiving account with the correct cost basis and acquisition dates.  I only did this for a user specified set of shares to transfer, but I don't see why Min Gain, or Max Gain would be any different.
    • The shares removed from the sending account will not appear in the Tax-Capital Gains Report so no gain/loss is reflected there.  That behavior is different than if the user manually enters a Removed Shares transactions; for a manual Remove Shares, a line is generated in the Capital Gains report showing $0 gain/loss as if the shares were sold at cost.  (I find that difference irritation, but I'll pick my battles.)
    • I did also find that if you err in entering the Shares Transferred by not including the receiving account, the specify lots gets reset to FIFO without notice. 
    Sorry for the shorter original post.  Wrong button at wrong time.
  • DAGbike
    DAGbike Member ✭✭
    Answer ✓
    Thank you
This discussion has been closed.