How to record "merger" exchange of FCFXX to FSPXX?

Rocket J Squirrel

On 9/16/22, Fidelity exchanged all shares of Fidelity CA Muni Money Market to Fidelity CA Muni Money Market Premium Class, which they called a "merger". What downloaded into Quicken was a Sell and a Buy at $0.00 for each.

This is obviously wrong.

I am trying to decide whether this is a Sell/Buy at $1/share or a Remove/Add of shares.

What do you think? Does it matter? Or do I have to wait for my 1099s?

q_lurker

Assuming you are treating the MM as a security, I’d try the mutual fund conversion.  (Watch for a basis glitch). May become a lot of Adds. 

OR
I’d go with the Sell / Buy at $1/share. Should be no cap gain issues.  

Really can’t think of a reason not to Sell / Buy. 

NotACPA

Since we're talking about a MMF, that (unless you've got glitches) is a constant $1, there shouldn't be any tax ramifications to a Sell/Buy ... its all $1.

Rocket J Squirrel

I tried mutual fund conversion at @q_lurker's suggestion, and Quicken managed to turn an integral number of cents into a long inaccurate decimal number. Sheesh. This resulted in a single Remove/Add which would have been easier to add manually because I wouldn't have had to correct Q's math.

I figured it was a Sell/Buy but then I took a look back at my actual statement. There really are no dollars there, so apparently Fido classifies it as a Remove/Add despite what downloaded into Q. I don't believe I've ever seen this "other activity" or "merger" type transactions from Fido before.