Assigning lots in Quicken 2015

joanzen .joanzen . Member
edited October 2018 in Investing (Windows)
On a recent transaction confirmation statement for my brokerage account, a sale has the following description.  "Lots without specific shares. Instructions will be depleted using high cost in, first out method."  What does this mean in context of assigning lots in Quicken as described in article GEN83147?  Thanks.

Comments

  • K.O. (Win-Premier)K.O. (Win-Premier) SuperUser
    edited October 2018
    "High cost in, first out" would mean if you do not tell your broker which shares to close then the broker will close out those with the highest cost (lowest if you are short) first minimizing your capital gains.  When you specify lots in Quicken you can specify "Minimum Gain" which may do the same thing.  I say may because there is no link between Quicken and your brokerage as to what lots are actually being closed (in this transaction or in prior transactions).

    I would caution you not to rely on Quicken data for tax reporting as it relates to capital gains. There are many problems with Quicken's capital gains reporting that make it inaccurate and given that your broker is required to report directly to the IRS I would default to their data over what you have in Quicken.
  • NotACPANotACPA SuperUser
    edited December 2016

    "High cost in, first out" would mean if you do not tell your broker which shares to close then the broker will close out those with the highest cost (lowest if you are short) first minimizing your capital gains.  When you specify lots in Quicken you can specify "Minimum Gain" which may do the same thing.  I say may because there is no link between Quicken and your brokerage as to what lots are actually being closed (in this transaction or in prior transactions).

    I would caution you not to rely on Quicken data for tax reporting as it relates to capital gains. There are many problems with Quicken's capital gains reporting that make it inaccurate and given that your broker is required to report directly to the IRS I would default to their data over what you have in Quicken.

    BUT, when you're doing your initial "scoping out" of your taxes ... use the Quicken data.  It's better than waiting until your brokerage gets around to sending their info to you ... and get's you a bit ahead of the game.

    Even if Q's numbers don't EXACTLY correspond with the brokers ... they'll be real close.
    Q user since DOS version 5
    Now running Quicken Windows Subscription
    Retired "Certified Information Systems Auditor"
  • K.O. (Win-Premier)K.O. (Win-Premier) SuperUser
    edited September 2016

    "High cost in, first out" would mean if you do not tell your broker which shares to close then the broker will close out those with the highest cost (lowest if you are short) first minimizing your capital gains.  When you specify lots in Quicken you can specify "Minimum Gain" which may do the same thing.  I say may because there is no link between Quicken and your brokerage as to what lots are actually being closed (in this transaction or in prior transactions).

    I would caution you not to rely on Quicken data for tax reporting as it relates to capital gains. There are many problems with Quicken's capital gains reporting that make it inaccurate and given that your broker is required to report directly to the IRS I would default to their data over what you have in Quicken.

    That may or may not be accurate.  Depending on how much short selling you do, home many tax lots (i.e. not closing antire position in 1 trade when opened in more than one trade), how many wash sales you may have, how much you used covered calls or covered puts.  So to say they'll be real close may or may not be correct.
  • joanzen .joanzen . Member
    edited September 2016

    Thanks for the responses.  I'm not really concerned about tax implications as I don't rely on Quicken for that.  Also, the trades in question are in a rollover IRA, so there are no tax implications. I'm just wondering how best to identify these sales in Quicken, when downloading trade confirmations from my brokerage, as the five methods available in Quicken...

    • Implied FIFO (First In, First Out): When you sell a security, the sale is not assigned to a specific Bought, Reinvest, or Shares Added transaction in Quicken. The sale is assigned to the first Bought, Reinvest, or Shares Added transaction. This means that a lot assignment can change if you later add a Bought, Reinvest, or Shares Added transaction that pre-dates all others for a security. All Placeholder Entry transactions in Quicken are Implied FIFO.
    • Explicit FIFO (First In, First Out): When you sell a security, the sale is permanently assigned to the first Bought, Reinvest, or Shares Added transaction in Quicken.

    • Explicit LIFO (Last In, First Out): When you sell a security, the sale is permanently assigned to the last Bought, Reinvest, or Shares Added transaction in Quicken.

    • Explicit Maximize Gain: When you sell a security, Quicken allocates shares from all of the Bought, Reinvest, and Shares Added transactions in a combination that yields the highest difference between your cost paid and cost sold for the security.

    • Explicit Minimize Gain: When you sell a security, Quicken allocates shares from all of the Bought, Reinvest, and Shares Added transactions in a combination that yields the lowest difference between your cost paid and cost sold for the security.

    ...(as well as the Average Cost), don't seem to directly correspond to "high cost in, first out" (although Explicit Minimize Gain may be the one).

    Thanks again for your insight.  I appreciate it.

  • urbanianurbanian Member
    edited March 2017
    If you want this feature, please vote for its addition at this link: https://getsatisfaction.com/quickencommunity/topics/add-lot-management-to-quicken-for-mac-to-support...
  • mshigginsmshiggins SuperUser
    edited December 2016
    urbanian said:

    If you want this feature, please vote for its addition at this link: https://getsatisfaction.com/quickencommunity/topics/add-lot-management-to-quicken-for-mac-to-support...

    OP indicates QWin. Your referenced post is for QMac.
    Quicken user since Q1999. Currently using QW2017.
    Questions? Check out the  Quicken Windows FAQ list
  • urbanianurbanian Member
    edited December 2016
    urbanian said:

    If you want this feature, please vote for its addition at this link: https://getsatisfaction.com/quickencommunity/topics/add-lot-management-to-quicken-for-mac-to-support...

    Oops. Sorry, didn't notice that. Never mind.

    There doesn't seem to be a way to delete a comment, though.
Sign In or Register to comment.