Interfund Transfer

rgmiket

I have latest Canadian version of Quicken Classic Deluxe.

The brokerage has done 2 transactions sold all units from old retired Mutual fund for 25k+…then bought same dollar amount units in replacement Mutual fund. The $/unit is different between old and new…hence units are different obviously.

I first tried the mutual fund transfer…which was total mess took a solid 15mins to complete…then had a 3Million dollar difference on the account overview….I then had to delete 40 to 80 separate transactions to reverse back to where I was.

I then tried the sell all units…and get the error "You should use two transactions: one to sell the shares you hold and one to create your short position" I don't understand this…so I created an entry Short Sell all the units for fixed Cash amount. Then I bought new Mutual fund with that cash.

Problem is it shows a -4k+ Cost Basis on the old mutual fund within the Account Overview Holdings Value view.

What is the best way to achieve this "interfund transfer" so cost basis, gain/loss and market value stays true?

Thank you,

Mike

Tom Young

"mutual fund transfer"

Are you referring to the "Mutual Fund Conversion" action here?

If you are using "average cost" to track share basis with the mutual fund then there's a known bug as indicated here:

https://community.quicken.com/discussion/7941176/mutual-fund-conversion-cost-basis-error

After reverting to a backup just before the attempted conversion you can try unchecking "Use average cost", and running that action again, or you can resort to using the "Corporate Acquisition (stock for stock)" action.

rgmiket

I will give this a try. Unchecking "Use Average Cost"… See if that works properly.

rgmiket

Well I am not able to find anywhere in that Mutual Fund details dialog anything about Use average Cost?? Couldn't find it under Preferences→Investing either?? Not sure where to find this setting don't see it anywhere.

Tom Young

It's in the "Security Detail View" then click on "Edit Details."

rgmiket

Not an option on the Security Details dialog…See below

Tom Young

Ah, the use of average cost is a US tax law wrinkle! Forgot all about the "Canadian" aspect here. But it looks like in Canada you MUST use "average cost" for mutual funds?

So maybe you're seeing the problem with the Mutual Fund Conversion action noted in the "Mutual Fund Conversion - cost basis error" post above and there's no way around the problem for a Canadian user?

If that's the case then it seems like you're forced to use the "Corporate Acquisition (stock for stock)" action. This action works in ALL Accounts in your file that have that particular security in them, but presumably you owned that mutual fund only in the one Account.

rgmiket

https://community.quicken.com/discussion/comment/20414295#Comment_20414295

yes…I am annoyed that I can't simply do this simple Sell all shares for X….then use X and buy y shares in new fund…without it throwing cost basis off…this is RRSP Mutual Funds so not really big deal…but quite annoying none the less.

Thanks for the info…I think I could do the conversion then go to each one and put in the actual unit cost…because each transaction was 25K and unit cost was adjusted to meet .10 shares at 250 000 per share…which ends up with 3 million in the hole…lol…stupid bug…

Arctic Hare

https://community.quicken.com/discussion/comment/20414431#Comment_20414431

The reason it doesn't work the way you want it to work is a sell all and buy new transaction should reset the ACB. If, in the real world, you sell your entire position and buy a new position, you completely reset your ACB. Quicken should, and does, model that.