Stock Transfer outside QUICKEN - Can't Document Completely

Michael Loy

I made a GIFT of stock to another person by transferring it to the recipient's brokerage account. Under tax law, the recipient assumes my capital basis and the transfer is NOT taxable to me if within the annual gifting limitation. In QUICKEN I can find only one method to document the stock transfer = 'removal'. While the removal does not show in the QUICKEN tax summary report as a capital gain/loss transaction, I would like to be able to retrieve it on other reports [e.g, my 'gifting report', my tax report to my accountant for documentation as being within non-taxable categories, etc. Because the 'removal' action has no provision for category assignment, I can't include it in any tax report. because I can't tag it, i can't pull it out in that search method.
The best solution would be to include a user-defined category.
How do I get this info to my tax accountant and provide myself with a method of retrieving this action with my other gifting methods?

Michael Loy

The removal action DOES show on the Schedule D-Capital Gains and Losses REPORT. It shows the # of shares, bought/sold dates and realized gain as zero. This is correct as a tax vulnerability, BUT without the ability to assign a custom category or at least a tag, there is no way to retrieve it when in the future needing to document the gift status.

q_lurker

Best I can offer off the top is my sequence for gifting to a charitable organization.  That is a four-transaction sequence:

• Remove Shares as you are doing >> no capital gains value reported, though the transaction will appear in the Cap gains report.
• Add Shares with the gift value basis >> I also assign the acquisition date of the original shares, though this does not really matter
• Sell Shares for the gift value >> Again, this will show on the Cap gains report, but still no gain/loss involved.  Cash is now in the account.
• Cash Out Transaction >> I tend to use a Withdraw with the Payee as the charity and the category as Contributions.  This is where you could assign your chosen category.  

rewilson

I've not tried this, and it is just off the top of my head, but could you create a "Gift" account and then transfer the shares first to that account. Then remove them from that account as you are currently doing. Wouldn't this still give the same capital gains report? Then you could create your "gifting report" by running the report in the "Gift" account. Again, just a quick thought off the top of my head, so it may need some tweaking.

Michael Loy

I tried the method suggested by g_lurker.
It works! I needed to specify the lots of the stock sold to "last in" to reflect the value of the stock when transferred to enable the Capital Gains Report to show NO GAIN.
Noted that it also does NOT show as a _RlzdGain on the Tax Summary Report.
Thank you......