How to treat 'Annual Fiduciary Admin Fees'

FredArthur
FredArthur Quicken Windows Subscription Member ✭✭✭
edited February 6 in Investing (Windows)

What transaction type should be used to record 'Annual Fiduciary Admin Fees'?
For years I have entered these fees using Remove - Shares Removed. Should they be treated as Sales to reflect the correct cost basis?

I'm always using the current release of Quicken Classic Premier on my
Windows 11 Home release 24H2 on ARM64 Samsung Galaxy Book4 Edge CoPilot+ PC

Answers

  • q_lurker
    q_lurker Quicken Windows Subscription SuperUser ✭✭✭✭✭

    Yes, I believe the shares should be 'Sold' and the resulting cash spent as a MiscExp or similar transaction. But the devil is in the details. What type of account? Can it hold 'cash'?

    For an IRA or other retirement account, it is not so much to get cost basis right, it is a step to get the accounting right. For other taxable accounts, yes, you'd like to keep the cost basis right, but that is mostly important if you rely on Quicken to any degree for tax information.

  • Boatnmaniac
    Boatnmaniac Quicken Windows Subscription SuperUser ✭✭✭✭✭
    edited January 6

    You are referring to a fee for administration or management of an investment account? If so, you should be using the Miscellaneous Expense transaction and categorize it with Financial:Financial Adviser.

    If the Fees apply to a specific security, you can enter that in the transaction but normally fees are deducted from the Account's cash balance. If there is insufficient cash in the Account, then one or more securities are usually sold to bring up the Account's cash balance to cover the amount of the Fee.

    The above assumes that the Fees are paid out of the investment account. If, instead, they are paid for from your checking account, use the same Financial:Financial Adviser category for the transaction in the checking account register.

    Quicken Classic Premier (US) Subscription: R61.16 on Windows 11 Home

  • Jim_Harman
    Jim_Harman Quicken Windows Subscription SuperUser ✭✭✭✭✭

    Another aspect of these fees is whether you consider them to be valuable financial advice or a drag on the account's performance in the Investment Performance Report and the Avg. Annual Return (%) columns in the Portfolio views. If you think the fees should show as reducing the performance, you can edit the Category you have used and check the "Affects investment performance" box.

    QWin Premier subscription
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