I have a negative cost basis on a stock that I own

Question

I purchased SNAP and it shows on the Investing tab with a negative cost basis. I have bought and sold it several times over the past 5 years, but over the past year or so, it has been showing with a negative cost basis every time I buy it.  Quicken is somehow picking up a wrong piece of data.

[Deleted User] · Answer

A cost basis cannot technically go below zero.  A negative basis is theoretically possible if you received non-dividend distributions and designated them all as "Return of Capital" in error.  Once the cost basis goes to zero, any additional non-dividend distributions should be designated as Capital Gains.

It could also be possible that there is an error in your cost calculation on Quicken.  You can do a validate with the "Recalculate stock cost" checked to verify your cost basis in Quicken.

Tom Young · Answer

I expect there's corruption in your data file.  You might work backwards in time in either the Portfolio or Holdings view - or both - to see when the first negative cost basis appeared and then delete and re-enter the transaction just prior to seeing that oddity.  Back up first, of courst.
Something else to try if that doesn't work is  File > File Operations > Validate and Repair.  Be sure to select "Validate and Rebuild" the investing lots when you do this.