Inherited Securities

Community UserCommunity User Member ✭✭✭✭
edited October 2018 in
I recently inherited some stock.  The aquisition date is the date that the decedent passed away.  With inherited stock, all sales, even if held less than one year, are considered a LONG TERM gain / loss.My question is, how do I enter the stock into Quicken so that it will indicate the correct date of aquisition, and properly indicate LONG TERM gain / loss, even if sold before 1 year holding period?I want to make sure that going forward when I export data from Quicken for tax purposes, that Quicken will list the transaction as Long Term, and not short term, for this type of transaction.Thank you!

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  • J_MikeJ_Mike SuperUser ✭✭✭✭✭
    edited October 2018
    > I recently inherited some stock.  The aquisition date> is the date that the decedent passed away.  With> inherited stock, all sales, even if held less than> one year, are considered a LONG TERM gain / loss.> > My question is, how do I enter the stock into Quicken> so that it will indicate the correct date of> aquisition, and properly indicate LONG TERM gain /> loss, even if sold before 1 year holding period?> > I want to make sure that going forward when I export> data from Quicken for tax purposes, that Quicken will> list the transaction as Long Term, and not short> term, for this type of transaction.> > Thank you!Just tried this in a test file.Use 'Add - Shares Added' transaction to add the shares to the account.In the dialog box for this transaction you specify a 'Date acuired' - insert a date one year earlier.Example_ added shares 1/1/06 with date acquired 1/1/05. Sold shares 3/20/06. Cap Gains report correctly showed LT gain. Porfolio views also correct as to holding - security does not appear prior to 1/1/06 added date.
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  • Community UserCommunity User Member ✭✭✭✭
    edited July 2016
    JM,Thanks for the suggestion, and for taking the time to test it out.  The only problem is that now the date of aquisition would be incorrect in Quicken by 1 year.To continue your example, assume the securities were inherited on 1/1/2006 (decedent passed away on that date), then the securities were sold on 3/20/2006.  When I generate Schedule D investment reports that will get exported to TurboTax, I would like to have Quicken indicate that the stock was aquired on 1/1/2006, sold on 3/20/2006, and that the transaction is a LONG TERM captial gain/loss (due to the fact that the security is inherited).Is there anyway to force Quicken to use Long Term when the holding period is less than one year?Thank you!
  • jepollardjepollard Member
    edited August 2016
    > JM,> > Thanks for the suggestion, and for taking the time to> test it out.  The only problem is that now the date> of aquisition would be incorrect in Quicken by 1> year.> > To continue your example, assume the securities were> inherited on 1/1/2006 (decedent passed away on that> date), then the securities were sold on 3/20/2006.> When I generate Schedule D investment reports that> t will get exported to TurboTax, I would like to have> Quicken indicate that the stock was aquired on> 1/1/2006, sold on 3/20/2006, and that the transaction> is a LONG TERM captial gain/loss (due to the fact> that the security is inherited).> Is there anyway to force Quicken to use Long Term> when the holding period is less than one year?No.Date of acquistion is immaterial for your inherited securities except as it pertains to determining whether the gains/losses are long or short term_ you put the word "Inherited" for the date acquired on Schedule D when you sell such securities.http://www.irs.gov/publications/p17/10311g58.html--John PollardPlease post questions in the forums, not via email.
  • J_MikeJ_Mike SuperUser ✭✭✭✭✭
    edited October 2018
    > JM,> > Thanks for the suggestion, and for taking the time to> test it out.  The only problem is that now the date> of aquisition would be incorrect in Quicken by 1> year.> > To continue your example, assume the securities were> inherited on 1/1/2006 (decedent passed away on that> date), then the securities were sold on 3/20/2006.> When I generate Schedule D investment reports that> t will get exported to TurboTax, I would like to have> Quicken indicate that the stock was aquired on> 1/1/2006, sold on 3/20/2006, and that the transaction> is a LONG TERM captial gain/loss (due to the fact> that the security is inherited).> > Is there anyway to force Quicken to use Long Term> when the holding period is less than one year?> > Thank you!This seems to be the answer as to how this is treated from a tax standpoint:  http://tinyurl.com/qay6dFrom reading this thread, gains from sale of inherited stock are always treated as Long Term <even if actually held for only a few days>. One simply inserts 'Inherited' or 'I' in the date acquired box in Sched D of the tax return.This means one will/may need to manually edit the Sched D entry as QW is not going to accept text in the date acquired field.Guess this leaves it open as to how one enters the info in QW.Am not aware of any way to force QW <or TTax> to use LT if holding period is less than one year. My guess is that QW is simply subtracting acquired date from the sold date to determine the holding period in days.PS - just went into TTax and changed the 'Date Acquired' to 'I' for what was a ST gain transaction. Bingo - TTax accepted the entry and moved the gain from ST to LT.Message was edited by         JM     at {1}
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  • Rocket J SquirrelRocket J Squirrel SuperUser ✭✭✭✭✭
    edited October 2018
    > Am not aware of any way to force QW <or TTax> to use> LT if holding period is less than one year. The LT/ST choice can be manually overridden. You may need to do this when using "Various" as the date acquired. > PS - just went into TTax and changed the 'Date> Acquired' to 'I' for what was a ST gain transaction.> Bingo - TTax accepted the entry and moved the gain> from ST to LT.This is documented in the TurboTax help for the Capital Gains and Losses Smart Worksheet. TT wants the word "Inherited" for paper filing and "Inherit" for e-filing.
    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win7 Pro & Win10 Pro.
  • J_MikeJ_Mike SuperUser ✭✭✭✭✭
    edited October 2018
    <snip>> > This is documented in the TurboTax help for the> Capital Gains and Losses Smart Worksheet. TT wants> the word "Inherited" for paper filing and "Inherit"> for e-filing.You sound like one of those people who read instruction manuals :-)
    QWin & QMac (Deluxe) Subscription
    Quicken user since 1991

  • Community UserCommunity User Member ✭✭✭✭
    edited July 2016
    Folks,Thanks for all the suggestions.  I did contact Quicken Technical Support via phone regarding this issue.  I mentioned that Turbotax is able to properly handle inherited securities, and Quicken is designed to transfer data to Turbotax, yet Quicken is unable to properly account for inherited securities, and consequently would feed incorrect data to Turbotax.  The technical support folks advised me that this is NOT a bug...it is a "feature" that was not implemented in Quicken.  There was no indication from Tech Support if or when Quicken would be updated to handle inherited securities consistent with TurboTax and IRS guidelines.
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