How to record the cost basis for company stock in a manually setup brokerage account

Question

I have shares in a privately held company.  I set up a manual brokerage account for it, but I have not found a way to record the cost basis for the shares that I own.  I tried adding a transaction via "Add Shares", but it didn't show the cost basis and merely doubled the shares.  It also won't let me edit or delete any transactions.

Tom Young · Answer

"I tried adding a transaction via "Add Shares", but it didn't show the cost basis and merely doubled the shares."
You overlooked something.  The Add shares action certainly allows you to enter the cost basis of the stock and the date of acquisition.
For complete accounting, it's generally best to enter transactions or a series of transactions that reflect how you actually acquired the stock in the first place.  Getting the cost basis of employer stock right can be confusing if the stock was acquired via stock options.  How did you actually acquire the stock?

crwalejr · Answer

When you set up a brokerage account there has to be an "as of" date that you show that the account is funded and that stocks are bought.  There are several ways to do what you want but you first have to decide the initial account date you want to establish.  If you set the account date before the stock was purchased, then just enter the transaction as a buy.  If you want to show the purchase of the stock prior to the initial funded date you set up for the account, then enter the transaction as an add.  When you add the shares put in the number of shares purchased, total cost, and the transaction date and date acquired (it will automatically determine price per share.)  Make the transaction date the same as the date acquired.  Depending on the initial amount you show the account funded with and the date of funding it, you may have to adjust this amount after entering the "Add" stock.  Hope this helps.