How to Find (and Fix) an IRR issue in Quicken (Windows)

Options
SEWallace
SEWallace Member ✭✭
edited August 2023 in Investing (Windows)

I have a specific trading account that (YTD) has been profitable… but quicken is reporting a loss. Cashflows in Excel (XIRR) show the appropriate return.

Quicken had been accurately calculating returns on this account for several years - until (roughly) the turn of the year.. and is still accurate with other (less active) accounts.

All positions (Equities and Options) are balanced… as is the overall cash balance on the account… so it's difficult to understand how the IRR could be so wrong on an account that is net cash (+).

How can I find and fix the cause for this disparity?

Comments

  • Bob_L
    Bob_L SuperUser ✭✭✭✭✭
    Options

    Is this with the performance report or portfolio? How are you treating the security option: no security(includes cash)?

    Quicken Business & Personal Subscription, Windows 11 Home

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    edited July 2023
    Options

    I would carefully examine the line items in the Investment Performance Report with all securities and just this account selected.

    Are the starting and ending balances correct?

    Are all the line items the same in date and amount as you used for the XIRR calculation?

    Were securities Added or Removed from the account? Are the market values of those securities correct?

    Remember that the IRR calculations are annualized, so YTD calculations may overstate gains are losses.

    Please let us know what you find.

    QWin Premier subscription
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Options

    "I have a specific trading account that (YTD) has been profitable… but quicken is reporting a loss."

    If that's literally true that Quicken is reporting a capital loss in a situation where you know there's a gain but everything else about the Account seems fine then that suggests basis has changed, somehow.

  • SEWallace
    SEWallace Member ✭✭
    Options

    This is both 'Returns by Account' chart in [Home\Investments] as well as the Portfolio view in the [Investing] section.

    The Options are identified as 'Options' in the Security Type… 'Unclassified' for Asset Class..

  • SEWallace
    SEWallace Member ✭✭
    Options

    Line by line review will be a challenge… as this is a very actively traded account. (Which is why I started with reconcile shares and account balance)… I've looked at the larger holdings to see if their detail is correct.. and (+/- the delay in quotes..) everything 'looks' correct.. I hope I don't have to do a audit on the 100's of trades in this account…. (will probably delete, recreated it before then..)

  • SEWallace
    SEWallace Member ✭✭
    Options

    I'm not sure this is related.. but with your suggestion on some change in Cost Basis.. I pull the Portfolio Value & Cost Basis report (for YTD) and - the 1st thing I notes was a handful of positions that were closed in 2022 listed within this 2023 report. The Basis and Balance for these (closed) positions don't make sense… so that is something I can dig into. {hopefully, pulling this thread will expose the larger issue..}

  • SEWallace
    SEWallace Member ✭✭
    Options

    Problem Solved…

    Seems that when Option Assignment occurs.. quicken will [Add] the shorted position back (which zero-out the number of shares..) but those 'Added' shares do not actually cover the short position.. and (apparently) screwed-up the cost basis for my account.

    Changing the transactions from [Added] to [Cover Short Sale] resolved the issue…. all is well the calculated Returns.

This discussion has been closed.