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How to adjust the flow-through purchase date on cap gains report from mergers/spinoffs?

questionsforever

I have several securities that underwent mergers or spinoffs and then I sold them. However the capital gains report shows the 'purchase date' of these stocks as the date of the entry of the merger or spin off transaction in the ledger. How can I adjust the purchase date to flow-through from the original security which was purchased a few years ago? If I enter that date, the merger/spin transaction will just end up going back in the ledger to some old date and be confusing. Is there a way to put a comment in a capital gains report? One reason for doing this is that I want to demonstrate that these are not short-term trading profits but in fact are part of long-term investments that had corporate actions. Having an older purchase date would help that.

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Comments

q_lurker

Depends in part on how the new holdings were initially created.

If it is an Add Shares transaction, you can edit the transaction and specify the Acquisition Date separate from the transaction date. If one Add represented multiple lots, you might want to use multiple Add Shares with separate Acquisition Dates.

If the new shares are created with a buy transaction, you can follow that with a Remove Shares and then an Add Shares with the correct Acquisition Date.

questionsforever

"If it is an Add Shares transaction, you can edit the transaction and specify the Acquisition Date separate from the transaction date"

What version of Quicken is this? In my version there is no such thing. Just says Transaction Date and nothing else. I am using the multi-currency version of Quicken. Is this a new feature that was added recently?

q_lurker

Not new. Been there pretty much forever. EDIT the transaction!

questionsforever

There is simply no such item in my edition (

I want my money back! Actually I just want this beautiful feature!

Jim_Harman

Maybe there is no need for the acquisition date in Q Canada because there is no tax distinction between long and short term capital gains as there is in the US?

https://www.td.com/ca/en/investing/direct-investing/articles/capital-gains-tax

questionsforever

Unfortunately there is. Unlike the US there is no > or < 1 year clear date criteria. Instead the tax office just decides based on 5 or 6 questions if it will be income or capital treatment.

That article reads, "Day trading and Capital Gains Tax
If your income is primarily derived from capital gains, it may be treated as business income by the CRA. This would lead to it being fully taxed at your marginal tax rate instead of the 50% capital gain inclusion. The CRA classifies any income generated through day trading or active trading as business income."

But it isn't only day trading. The criteria are
"

frequent transactions, extensive buying and selling of securities
short periods of ownership
some knowledge of or experience in the securities markets
security transactions form a part of the taxpayer's ordinary business
a substantial portion of the taxpayer's time is spent studying markets and investigating potential securities purchases
security purchases are financed primarily with margin or debt
the taxpayer has advertised or otherwise made it known that he is willing to purchase securities
securities purchased are speculative in nature or do not pay dividends"

So it is in fact quite important for Canadian Quicken to have the acquisition date field as well. Not sure who to ask to add it.
Is @Quicken Kristina able to assist in adding this feature?

PS to quicken or anyone: all the corporate merger or spinoff transaction types obliterate the look-through original lot dates. Dates are important! Somehow Quicken should be able to do corporate actions and also pass the original lot and dates. It matters if a stock was purchased in say 2015 vs reset in 2023 due to some corporate action that did not result in a taxable sale or realized gain.