cost basis

gerald m
gerald m Member
edited June 2022 in Investing (Windows)
Quicken has no way to adjust COST BASIS for securities - which happens when a spouse dies and security values costs are adjusted as as to the value on the day of death -

Comments

  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    The cost basis rules that apply to a spousal inheritance vary but the same approach to resetting the cost basis may be applied.  I suggest you enter Removed action transaction for each holding being adjusted and an Added action transaction to reset the cost basis.
  • [Deleted User]
    edited May 2022
    To add to what @Sherlock stated - there are variables in what will happen, but your financial institution should have a vested interest in making sure the transactions happen correctly and accurately for tax purposes.  In that respect it would be a good idea to emulate the process and transactions that are documented in your FI's transaction history, and your statements.  Your FI will probably close the joint account, remove the shares, and then open a new account and add the shares with the adjusted cost basis.  Each security from the old joint account will probably split into two, one with the "old" cost basis, and one with the new cost basis (FMV based on DOD).  In Quicken, the joint account will close, and the new account opened to accept the new split securities with the old and new cost basis.  When everything settles, you can verify Quicken's cost basis with your FI.  If you need to adjust the cost, there is more than one way to adjust cost basis in Quicken depending on your situation.
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