Non-taxable Mutual funds merger event treated as Capital Gains

leishirsute

Quicken is treating a mutual funds merger as capital gains in the Capital Gains report.

Using the "Mutual Funds Conversion" transaction type, Quicken performs the action:

the original fund is Removed and a lot is Added to the new fund for each original lot.

This is a non-taxable event, but the Captial Gains report in Quicken reports the removal of all lots as a Capital Gain.

Was this the proper way to rename a fund?

Should Quicken be treating the conversion as a taxable Capital Gain in the Capital Gains report?

I reported the problem.

It appears that the Tax Planner, and Tax Summary and Tax Schedule reports correctly do not include the incorrect Capital Gains showing in the Capital Gains report.

q_lurker

Typically, I’ve seen Remove Shares transactions get reported in the Capital Gains report as entries with no gain/loss. Is that what you are seeing?

My spin on that is that the programmers (a long time ago) opted to include those transactions in the report rather than exclude them, since they could not really know the underlying reason for the removal. Better to over-report (include) than under-report.

That “don’t know” circumstance still applies even though they “know” this remove came from a MF conversion. Once the transactions are created in the list, they are all independent. There is no tag that carries along associating that remove to the MF conversion.