Tax Planner Long Term Capital Gains Problems

TomS

The Capital Gains calculator in Tax Planner is perplexing. I've tried many things to sort this out. Let's say I have an investment account with a sweep money market fund MM and some investments XY?. Here's what my register looks like with paired actions because of the MM sweep. I see no problem here at all.

MM has 555 shares.
3/5 Sold MM 222 sh @ 1 cash=222
3/5 Bought XY1 111 sh @ 2 cash=0
3/31 Div XY2 22 cash=22
3/31 Bought MM 22 sh @ 1 cash=0
3/31 ReinvDiv MM 15 sh @ 1 cash=0
4/3 Div XY3 33 cash=33
4/3 Bought MM 33 sh @ 1 cash=0
4/8 Sold XY4 44 sh @ 2 cash=88
4/8 Bought MM 88 sh @ 1 cash=0

Now we go to Tax Planner and look at long term capital gains LTCG.

Shares Bought Sold Proceeds Cost Gain/Loss
MM 15 3/31 3/5 -15 Enter -15* corresponds to ReinvDiv
MM 22 3/31 3/5 -22 22 -44 corresponds to XY2 sale and MM buy
MM 33 4/3 3/5 -33 33 -66 corresponds to XY3 sale and MM buy
MM 60 4/8 3/5 -60 60 -120 doesn't match anything

I didn't write it but the dates are all this year. Regardless of what crazy math is going on here, they cannot be long term gains. There's nothing long term about it and none of these were sales. The sell date is given before the bought date. The first 3 at least have corresponding transactions. The 4th value appears no where in all of Quicken. I thought the last one might be part of the 4/8 MM purchase.

I ran super validate. It said Bought or Shares Added incorrectly categorized as realized gain, for the middle 2 transactions in the Tax Planner, and an additional one for $222 (I think it is the first entry in the register). They were not entered that way but somehow internally they became realized gain. The reinvested dividend of 15 was not mentioned.

Exit Quicken. Come back. Supervalidate shows no errors. Go into Tax Planner and get the exact same result.

I tried deleting and re-adding some of the Buys. No change. I removed the very first sale of 222 sh MM. All of the LTCG entries went away! Enter the sale again and the Tax Planner has the same 4 entries. I'm out of ideas.

Quicken R62.16

Jim_Harman

When you sell a security, Quicken defaults to using FIFO, so the MM lot or lots that were sold on 3/5 might have been long term holdings. If those shares had an incorrect cost basis of 0, that would be a LTCG of $222.

Go to the account where this occurred and click on Holdings. Set the As of date to 3/4. Click on the + sign next to the MM fund to see all the tax lots. Do some from before 3/4/24 have a cost basis of zero and thus a gain or loss?

If so, fix those transactions and any others that have a gain or loss. For example, perhaps there were shares that were Added with a cost basis of zero or maybe there are Placeholders for the money market fund that are involved.

Please let us know what you find.